Gaming Lodging Leisure Industry Ratios

Ratios & Metrics (compare absolute numbers, trends over time & trends between companies): - EV/EBITDA - FFO/Share - EPS - EBITDA Margins - Price/FFO - RevPAR (Very important for Lodging) - ADR - Occupancy Rates - Room/unit growth and acquisitions - NAV/share (applicable for some REITs)

Also, factors like "operating leverage", i.e. to what extent costs are fixed, matters a lot in analysing how hotel companies perform when there are changes in revenue/the economy. Not all of the ratios above are applicable if you are looking at buying hotels or hotel portfolios directly and not the companies.

Here's a primer from GS on the Lodging industry from 6 years ago (pre-financial crisis). A lot of the market commentary is not relevant but you should be able to see examples of what ratios are important and what figures from the financial statements matter. Also, it discusses what different types of companies constitute "lodging" and how these companies make money.

http://www.scribd.com/doc/85653602/Goldman-Sachs-US-Lodging-Primer-2Jun…

Also check out the investors relations section on these casino companies (if you manage to get an analyst's analysis of one of these companies even better):

Las Vegas Sands Corp. (LVS.N) MGM Mirage (MGM.N) Wynn Resorts, Limited (WYNN.O)

And for hotel companies (both management and hotel owners):

InterContinental Hotels Group: http://www.ihgplc.com/index.asp?pageid=3 Marriott: http://investor.shareholder.com/mar/default.cfm Host Hotels and Resorts: http://hosthotels.com Strategic Hotels & Resorts: http://www.strategichotels.com