Accommodations with kitchen and laundry facilities for enhanced livability. While they are suitable for long-term stays and characterized by providing home-like comforts, they tend to offer fewer services than hotels, often on a self-service basis.

A technique of offering guests more expensive room types and additional services to increase spending at the time of booking or during their stay.

Hygiene products provided in accommodations.

Entering the room earlier than the normal check-in time. Additional charges may apply.

Rental income earned from owning real estate when investing in real estate. (↔ Capital gains)

Tourists or travelers visiting Japan from abroad.

A guest who wishes to stay overnight directly without a reservation. Walk-in guests can meet urgent lodging needs and help increase room occupancy rates, but whether they can stay depends on room availability.

Equity refers to an investor’s contribution of capital in exchange for ownership in an asset. It carries high risk but offers the potential for high returns through asset value appreciation and profit distribution. Senior loans are low-risk and low-return, while mezzanine loans are positioned below equity in risk level.

The number of reservations exceeds the actual number of rooms. Hotels may overbook in anticipation of reservation cancellations.

A period of time when demand is at its lowest in a tourist destination or lodging facility. During this period, there are fewer travelers and room rates are typically discounted.

A facility that combines a restaurant and accommodation, meaning “a restaurant with accommodation” in French. The characteristic of an auberge is that you can enjoy authentic cuisine using local ingredients while staying there.

A company or individual responsible for the operation of a hotel or other facility. The operator manages and provides services at the hotel.

An accommodation plan that includes meals, drinks, activities, facility and service fees in the lodging price.

A drawing showing the precise measurement of the boundaries of land and the results of mutual confirmation between neighboring landowners, which drawing details the location of the boundaries and the placement of boundary markers based on the survey work performed by a surveyor.

An application submitted in accordance with the law for new construction, reconstruction, or alteration of a building. The administrative agency examines the application to ensure that it complies with the Building Standard Law.

A certificate issued when the building plans in the application for building confirmation are found to be in conformity with the law and standards. It is required prior to the start of construction and certifies the legality of the building.

The ratio of asset prices, such as real estate, to the net income derived from those assets.

The profit obtained from selling real estate in real estate investment. (↔ Income gain)

Temporary storage service or dedicated space for customers’ luggage and coats.

Food and beverage service for guests and event attendees.

A method of evaluating the value of a property based on the cost (reproduction cost) required to newly reconstruct the property in question. The value of the property is calculated by making depreciation adjustments from the reproduction cost, taking into account factors such as the building’s aging and functional obsolescence.

A certificate issued after the completion of a building, upon passing the statutory inspection and being deemed compliant. This certifies that the building has been properly constructed in accordance with the Building Standards Act.

Compensation paid for closing a sale or service. In the hotel industry, it refers to the commission received by a travel agent or agent for referring a client.

Comparable hotels in the neighborhood competing for guests.

Services and items provided free of charge to guests and users (e.g., breakfast, welcome drinks, amenities, etc.)

A system that centrally manages OTAs and direct booking sites, adjusting availability and rates in real-time.

Accommodation for long-term stays equipped with furniture and appliances, offering services such as cleaning and front desk service. It combines the livability of a home with the services of a hotel.

Full-service accommodation. Equipped with a restaurant, banquet hall, etc.

It is the most prioritized loan, and if the borrower becomes unable to pay, the senior loan creditors are repaid preferentially, making it considered highly secure. It is characterized by low interest rates.

The cost incurred by a company when raising funds. This is calculated as the weighted average of equity and debt (such as liabilities) and is considered the minimum rate of return for a company when making new investments.

A method of evaluating the value of real estate based on the income that the property is expected to generate in the future. Specifically, it calculates the value of the property by discounting the income, such as rental income obtained from the real estate, at a certain interest rate.

Drawings created after the building is completed, based on the actual construction, showing the final state of the building.

The yield calculated by subtracting depreciation from NOI and dividing by the real estate price.

The period that falls between the peak season and the off-season. During this time, demand tends to increase, but not as much as during the peak season, so accommodation prices become relatively reasonable.

Metal utensils such as knives and forks.

Using a multi-person room by one person.

The right to receive profits arising from trust assets. It is widely used in the management of real estate and financial assets. Based on the trust agreement, beneficiaries receive the benefits arising from the assets managed by the administrator of the assets (trust manager).

The purchase and holding of investment units by a sponsor.

A method of fluctuating sales prices based on market demand.

The phenomenon where the value or ownership interest of existing shareholders’ stocks is diluted due to newly issued stocks or capital raising.

A method for managing inventory and pricing across all sales channels.

The ratio of the actual number of guests to the number of guests that can be accommodated (capacity).

A service in which a hotel or lodging facility offers daytime use instead of overnight stays. It is primarily used for business meetings, breaks, and short work spaces, and is often more affordable than lodging rates.

A hotel specialized in design and concept. Typically designed by renowned designers or artists, its interior and exterior are particularly attractive and unique. Themes related to art, culture, fashion, etc., are reflected.

A method of raising funds through borrowing or issuing bonds. It involves the obligation to pay interest and repay the principal, and while the risk is low, a high debt ratio can impair financial stability.

A process to enhance the accuracy of investment decisions by conducting detailed investigations in legal, financial, and technical aspects to comprehensively evaluate the asset value and risks when acquiring a property.

The period when demand is highest at tourist spots and accommodations.

It is when a guest who made a reservation does not arrive without any notice.

A loan where the borrower is not obligated to cover the shortfall with their other assets, even if the proceeds from the sale of the collateral are insufficient to fully repay the debt. (↔ Recourse loan)

The use of rooms by the hotel for staff and related personnel.

The lowest room rate at which a reservation can be accepted for a specific period of time or under specific circumstances.

Facilities for hosting banquets and large events.

Rooms designed to accommodate the needs and comfort of people with disabilities or mobility impairments.

A limited-service type of accommodation characterized by its compact size and minimal necessary facilities.

An index that expresses the superficial profitability of a property, i.e., the amount of rental income relative to the property’s price. It is calculated by dividing the annual gross income by the property price.

A study to evaluate the feasibility and profitability of a development project by comprehensively examining market research, demand forecasts, cost analysis, legal conditions, and other factors to determine whether or not to invest.

A prearranged agreement to acquire or lease a property at a specific future date and time. This approach reduces the risk of future fluctuations in property prices and conditions and contributes to stabilizing the financing and planning of development projects.

A visualization of the pace of bookings that come in for a given arrival date from before that arrival date.

A system where securities backed by real estate are issued and sold to investors to raise funds. This increases liquidity and makes access to real estate investment easier.

A fund formed for the purpose of supplying properties to REITs and private funds in the future.

A lodging facility that offers a wide variety of services and amenities to its guests. They are often fully equipped with restaurants, bars, banquet facilities, room service, fitness centers, spas, and other amenities, as well as business centers and meeting rooms.

Hostels are low-cost accommodations. They are often dormitory-style and usually share common space with other guests. Popular with backpackers and budget travelers. Although simple, they also serve as a place to socialize.

Waiting spaces or lobbies in buildings such as hotels, theaters, and office buildings.

A form of lodging in which private homes or vacant properties are rented out for short periods of time to tourists through platforms such as Airbnb. It is characterized by the ability to experience the lifestyle unique to the region, and in some regions there are restrictions.

Positioned between senior loans and equity, the risk and return are moderate, and the interest rate is usually set higher than that of senior loans. It serves to broaden financing options.

A system that unifies accounting standards for the hotel industry. Used to manage and report revenues and expenses.

A hotel that emphasizes a particular lifestyle and values and provides that experience. The design, services, and amenities reflect that lifestyle and provide a unique and personalized experience for guests.

Accommodations offering high-end facilities and services. For affluent or special travelers.

The standard room rate set by a hotel or lodging facility. This rate is the normal selling price, with no discounts or special rates applied.

A vendor that meets with customers face-to-face to book accommodations and provide services. (↔ OTA)

A loan in which the borrower is obligated to make up the shortfall with his or her other property if the proceeds from the sale of the collateral property are not sufficient to pay off the debt. (↔ Non-recourse loan).

An agreement to lease real estate or equipment for a fixed period of time.

The period from the reservation date to the arrival date.

Bedding, towels, and other fabric products used in hotels.

Refinancing is the process of repaying an existing loan with a new loan and changing its terms. Major factors include refinancing due to lower interest rates, taking out a new loan at the end of the term, extending the repayment period to reduce the burden of the loan, and raising additional funds.

This type of accommodation provides guests with essential lodging functions but offers limited services compared to full-service hotels. Typically, meals are either not provided or limited to breakfast only, and facilities like restaurants, bars, and room service are generally not available.

Hotel business is the business of providing lodging facilities and requires a business license under the Ryokan Business Law to operate. It includes hotels, inns, simple lodging houses, and boarding houses, and refers to the business of providing rooms and necessary services to guests.

A front desk or reception desk near the entrance of a hotel or facility.

A set-up method that offers the same rate across all channels when a customer attempts to make a reservation through any booking channel or means.

Pricing and inventory management techniques to maximize lodging revenue.

Average room revenue per room sold (per day). An index to measure the profitability of the lodging sector in terms of the unit price per room.

Responsible for operating and managing real estate portfolios to maximize asset value, and to stabilize and grow revenues through acquisition and disposition, revenue planning, tenant management, and value enhancement measures.

An indicator of the relative positioning of the ADR of the subject hotel relative to a group of competing hotels. Calculated as ADR of the subject hotel / ADR of the average of competing hotels (*including the subject).

Responsible for maintaining a safe and comfortable building environment and ensuring smooth daily operations through building facility maintenance, cleaning, security management, and tenant relations.

A long-term investment expenditure on an asset made for the purpose of future income generation or value enhancement. In the case of real estate, building renovations and equipment upgrades fall under CAPEX and are usually subject to depreciation as expenditures to increase asset value.

A method of evaluating the value of real estate by summing the discounted present values of future cash flows.

Number of guests per room. Synonymous with MOR.

One of the concepts in financial analysis. It is the amount obtained by adding extraordinary gains and losses, interest expenses, depreciation and amortization to pre-tax profit.

A general term for the department that provides food and beverage services in hotels and restaurants.

A contract in which a hotel management company contracts with a franchisor to use its brand or business model. The hotel management company manages the hotel by itself, while using the brand, etc., to attract more customers.

Furniture, fixtures, equipment, etc. (e.g., tables, chairs, beds, cabinets, etc.)

A trip planned and arranged by individuals or small groups, rather than a group tour.

A computer-based system used in the travel industry, a platform for booking and selling travel products such as airline tickets, hotels, and rental cars.

General Manager of the hotel.

The profit after deducting operating costs from GOR and an important indicator for evaluating the operational efficiency and profitability of a hotel.

A hotel’s total operating revenues and includes all revenues derived from lodging, food and beverage, and other services.

One of the indicators used to evaluate profitability in the investment business. It is a discount rate such that the sum of the discounted present value of cash inflows and outflows from a reference point to the future is zero.

An important indicator in the evaluation of management and operational performance.

An indicator showing the duration of a customer’s stay at an accommodation facility. Generally, long-term stays are a factor that enhances the facility’s revenue.

A measure of the ratio of the loan amount to the appraised value of a property. The higher the LTV, the larger the loan is relative to the value of the property and the greater the risk. Loan terms and interest rates are usually determined based on LTV.

A contract where an operator is entrusted by the hotel management company to carry out operational management. The operator utilizes brand power and expertise to maximize revenue.

MICE is an acronym for Meeting, Incentive Travel, Convention, and Exhibition/Event, and is a general term for business events. MICE events are an important source of demand for the hotel industry because they involve large-scale lodging and food and beverage.

An indicator showing the relative positioning of the target hotel’s OCC in comparison with competing hotels. It is calculated by dividing the target hotel’s OCC by the average OCC of competing hotels, including the target hotel.

Cash flow income generated by real estate management. It is calculated as “NOI (total income such as rent – operating management expenses) – capital expenditure reserve amount,” and does not deduct depreciation or interest payments to banks.

A rate of return obtained by dividing the net cash flow (NCF) from a real estate investment by the real estate price, which is a more rigorous measure of profitability than the NOI yield.

Gross rental income from real estate less operating and administrative expenses is net income. It does not deduct non-expenditure depreciation, interest paid to banks, etc.

An indicator used when investing in real estate, a higher NOI yield indicates higher profitability. It is calculated by dividing NOI by the property price.

The sum of the discounted present value of the future cash flows to be obtained from the investment, calculated using a standard discount rate, minus the initial investment.

Number of rooms sold per available room for sale.

Supplies, equipment, etc. related to hotel operations.

Agents who book and sell accommodation and travel on the Internet (e.g., Booking.com and Expedia) (↔ Real agents)

Responsible for lease management, tenant relations, securing rental income, and contract renewal and termination procedures for the purpose of managing real estate revenues. The role is to maximize stable operations and revenues while maintaining and improving asset value.

An integrated management system for hotel reservation management, room management, and billing.

The average daily room revenue per available room for sale. It is the same value as ADR multiplied by OCC.

A legal entity established to manage a specific project or asset. The main purpose is risk management and asset segregation, which can improve the efficiency of real estate investment and receive preferential tax treatment.

A method of reducing costs while increasing the value of a product or service.