GRM

What about Financing Metrics?Cap Rates, GRM, DCR, RevPar, ADR, COC, oh my!

So many financial terms….do you understand what you’re looking at? Your first step, other than working with me as your investment specialist, is to understand the metrics. GRM: GROSS REVENUE MULTIPLIER DCR: DEBT COVERAGE RATIO 8 CAP: 8% CAP RATE COC: CASH ON CASH ADR: AVERAGE DAILY RATE RevPAR: REVENUE PER AVAILABLE ROOM OCCUPANCY (ANNUALIZED […]

What about Financing Metrics?Cap Rates, GRM, DCR, RevPar, ADR, COC, oh my! Read More »

Gross Income Should Not Include Lodging Sales Tax When Talking Value!

When our guests pay for their full stay, we include our local state sales tax. How this translates in accounting terms is that the cost of the room is revenue earned and the state lodging sales tax is a liability. The tax is not ours to keep, it’s ours to pay to the state each

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