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Glossary – D   arrow

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Debt-coverage ratio (DCR)
Ratio of net operating income to annual debt service. Expressed as net operating income divided by annual debt service.

Demographics
Characteristics of human populations as defined by population size and density of regions, population growth rates, migration, vital statistics, and their effect on socio-economic conditions.

Depreciation
The loss of utility and value of a property.

Distribution Strategy
This is figuring out when and how to sell rooms based upon the cost of acquisition of the individual channel. Hotels can maximize their profit by lower their acquisition costs during high demand periods.

Due diligence
The process of examining a property, related documents, and procedures conducted by or for the potential lender or purchaser to reduce risk. Applying a consistent standard of inspection and investigation one can determine if the actual conditions do or do not reflect the information as represented.