ADRR Average daily room rate.
Architect The architect establishes the overall design and is
often responsible for the detailed design of the fabric of a hotel.
Architects are concerned with both the functional and aesthetic
issues of building design. Typically, architects are appointed as
lead consultants and will contribute to the project brief.
Area per room A useful guide to ensure the efficient use of
space within the hotel. This is defined as the gross floor area of
the whole building divided by the number of bedrooms.
ARR Accounting rate of return. The percentage rate of return
earned by a capital investment project.
Asset Can represent a building or item of mechanical or electrical
Asset management The process by which a property with
money value is effectively controlled and managed as a business.
BoH Back of house.
BoQ Bill of quantities. A pricing document prepared by a quantity
surveyor, which may include a detailed description of the type
and quantity of the work involved.
Brands Brands are products, services or concepts that can be
distinguished from other products, services or concepts in a way
that it can be easily communicated and marketed. A ‘brand
name’ is the distinctive name used to market the offer.
Brown field site Development land or site area that is contaminated
or requires remedial works before new development or
building can occur.
Brown goods Describes household items of furniture such as television
sets, chairs and tables.
Budget cost The predicted cost as opposed to the actual cost.
Buildability Judgement based on experience and practice as to the
practicability of a construction method or form.
Building file A requirement under the UK’s Construction (Design
Management) Regulations (1994) to keep a complete record of materials
used in construction, all the construction drawings with maintenance
procedures detailed and even how the building can be safely demolished
at the end of its life.
CAGR Compound average growth rate.
Casegoods A term used widely in the industry for bedroom furniture.
CMBS Commercial mortgage backed securities: bonds backed by
mortgages on commercial property.
Commissioning Establishing a building as a working operation.
Concept development The process of identifying, defining and collecting
ideas to create an image for a new business or product.
Condition survey Inspection and report describing the current state of a
building or item of plant.
Construction manager The construction manager is a fee earning professional who is employed to programme and coordinate the construction
works undertaken. The construction manager selects, supervises
and manages the work of specialist trade contractors who are employed
to undertake the work.
Cost of capital The rate of return required by investors in the business.
DCR Debt-coverage ratio.
Deal sheet Summary of the major terms of the proposed loan.
Debentures Fixed interest long-term loans.
Depreciation The proportion of the cost of a fixed asset which is to be
charged to the profit of the business.
Discount factor The percentage rate of return which represents the
opportunity cost of using the funds in different ways.
Discounted cash flow The future monetary value of net cash flows
expressed in present value terms.
Double loaded corridors Acorridor providing access to rooms on two
Due diligence A systematic process in which concerted attempts are
made to unearth every fact that is relevant to the situation, and that
might affect the decision to continue with the venture.
EBITDA Earnings before interest, taxes, depreciation and amortization.
Can be used to analyse the profitability between companies and
industries, because it eliminates the effects of financing and accounting