Glossary | EquityRoots c

Hotel Lingo

Occupancy

This is a percentage number reflecting how many rooms out of any hotel total rooms are rented.

ADR

Average Daily Rate is a metric used to gauge the average rental income per room. You get this number by: total room revenue ÷ # of total rooms = ADR. Sometimes rooms are rented at different rates so ADR is a helpful tool to look at the average strength of room rate.

RevPAR

Revenue per available room is a metric that is arrived to by ADR * Occupancy rate. RevPAR is helpful when looking at the big picture.

Keys

Key is another word for hotel room. Hotel properties are commonly sized by number of keys.

Limited Service

Limited service hotels are properties that do not offer restaurant, conference, or banquet facilities. They are designed to be simple and efficient. Limited service hotels typically offer free continental breakfast. As a result of its simplicity and efficiency, these properties are typically the cheapest to develop and maintain. Examples of limited service brands are, Fairfield by Marriott, Holiday Inn Express, Hampton Inn.

Select Service

Select Service hotels are a hybrid between full service and limited service properties. Select service hotels typically have some conference space, a bistro style food and beverage option, a bar, and many ammenities that follow in the footsteps of their full service luxury counterparts, however the overall size of the hotel is scaled down to a more efficient box with less overhead. Courtyard Marriott, Hilton Garden Inn, Holiday Inn, Hyatt Place.

Full Service

Full Service luxury hotels are large boxes that often have multiple conference rooms, restaurants, and sometimes convention space. Examples of full service luxury hotels are Ritz Carlton, Renaissance, Westin, Intercontinental.

Extended Stay

Extended Stay hotels are typically designed for "all-suite" longer term guest. Sometimes corporate training seminars and conferences can last for more than 7 days so hotel guest that want to feel more at home with larger rooms or separate bedrooms, kitchenettes, and lounge areas may prefer an "all suite" extended stay property. Some examples of extended stay brands are Residence Inn by Marriott, Home2 by Hilton, Staybridge, Hyatt House.

The Big 3

The Big 3 refers to the three biggest and most successful hotel chains. Marriott, IHG, Hilton.

Crowdfunding | Investment Lingo

Issuer

This is the person or entity trying to raise capital.

Sponsor

This is the person backing and leading the deal. Many times, the issuer and sponsor are the same person or entity. All sponsors on equityroots.com are expected to have at least twenty years experience in building, buying, operating, and selling hotel assets without any prior record of default or bankruptcy. The sponsor behind the deal is just as important as the deal itself in the eyes of online investors.

Investor

This is a person or entity trying to invest money into a hotel deal. These people come from all walks of life and want a real-estate backed investment. Their intent is to exchange money for a debt or equity position in one or many of our hotel offerings. Securities laws often dictate who can participate. Please see our FAQ section to determine investor eligibility.

Foreign Investor

This is an investor domiciled outside of the United States. These investors are often looking for commercial real-estate investments within the United States. Federal legislation such as the Immigrant investor Program, or the EB-5 program allows the investor to obtain permanent residency within the United States if their investment qualifies and completes the procedural process. For more information, please see our Foreign Investor page.

Retiree Money

Retired people often invest on equityroots. They want to put their hard earned money to work, using dividends to cover lifestyle expenses and passing on their principal as wealth through estate planning. The internal Revenue Code and Congress have made special provisions and tax benefits for retirees. One of the preferences afforded to retirement investing is the ability to defer taxable gains as you would find in many individual retirement accounts (IRA). Today's self-directed ira accounts allow investors to invest into commercial real-estate like hotels and recognize all the benefits of a traditional IRA account.

Retail Money

This is the investor segment that represents the masses. These are America's hardest working nurses, engineers, doctors, lawyers, and other professionals looking to grow their wealth through real-estate investments. Most retail investors are too busy in their professional lives to allocate significant time behind their real estate investment, instead they prefer to park their money with industry leaders and seasoned veterans that have long standing and proven track records of building, buying, and selling hotels.

Industry Money

This is the investor segment that often leads the way. Equityroots.com has the largest membership of active developers, operators, general managers, director of sales, and owners. These investors are very familiar with hotel investing because they currently are, or previously have been in the hotel industry. Many of them have built tremendous portfolios of their own, and are now just looking to diversify their positions. Veteran hotel owners have used equityroots.com to diversify their portfolio by brand, region, and type.

Capital Raise

This is the technology and legal process of raising money.

Technology Fee

This is a fee associated with the cost of raising capital on equityroots.com. Technology cost often cover digital marketing cost that comes with crowdfunding.

 

 

 

As Seen In:

Equityroots is recognized by notable firms and popular publications such as Asian American Hotel Owners Association (AAHOA). Equityroots is recognized by notable firms and popular publications such as Asian Hospitality. Equityroots is recognized by notable firms and popular publications such as Crowdfund Insider. Equityroots is recognized by notable firms and popular publications such as FUNDABLE. Equityroots is recognized by notable firms and popular publications such as Hotel Management. Equityroots is recognized by notable firms and popular publications such as The Huffington Post. Equityroots is recognized by notable firms and popular publications such as India Tribune. Equityroots is recognized by notable firms and popular publications such as Launchrock. Equityroots is recognized by notable firms and popular publications such as Yahoo! Finance. Equityroots is recognized by notable firms and popular publications such as Chicago Inno.
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