Term Asset-Backed Securities Loan Facility – A program created by the U.S. Federal Reserve in November 2008 to boost consumer spending to help jump-start the economy. This is accomplished through the issuance of asset-backed securities. The collateral for these securities consists of student, personal auto and credit card loans. Backing for these loans comes from the (up to) US$1 trillion provided by the New York Federal Reserve Bank. This program is in place until December 2009. Issuance of asset-backed securities continues only until that point. If, on that date, the government decides that the economic state hasn’t improved up to an appropriate level, benefits of the plan are to be reassessed.
Top 25 Markets (U.S.) – STR’s Top 25 Markets are generally the largest U.S. metro markets by number of rooms (inventory), but STR does apply geographic diversity to provide more rounded coverage for the whole industry. For example, STR adds Oahu, Hawaii, and excludes a few California and Texas markets because those states are already well represented. STR also intentionally excludes Las Vegas, the largest hotel market based on number of rooms available, due to the gaming nature of the market and sample depth of the casino hotels.
Total Revenue – Revenue from all hotel operations, including rooms sold, F&B, parking, laundry, phone, miscellaneous and any other revenue sources.
Transient Rooms – Include rooms occupied by those with reservations at rack, corporate, corporate negotiated, package, government, or foreign traveler rates. Also includes occupied rooms booked via third party web sites (exception: simultaneous bookings of 10 or more rooms which should be defined as group).
TrevPAR – Total revenue per available room. The sum total of net revenues from all operated departments plus rentals and other income per available room for the period divided by the total available rooms during the period.
Troubled Asset Relief Program – A government program created for the establishment and management of a Treasury fund to curb the ongoing financial crisis of 2007-2008. The TARP gives the U.S. Treasury purchasing power of $700 billion to buy up mortgage backed securities from institutions throughout the country to create liquidity and unseize the money markets. The fund was created by a bill that was made law 3 October with the passage of H.R. 1424 enacting the Emergency Economic Stabilization Act of 2008. The Treasury was given $250 billion immediately, and the President must certify additional funds as they’re needed. The additional funds will be distributed as $100 billion, and then as the final $350 billion is given. Congress has the right to not approve the additional amounts.
Toxic Assets – An asset that becomes illiquid when its secondary market disappears. Toxic assets can’t be sold because they’re often guaranteed to lose money. The term “toxic asset” was coined in the financial crisis of 2008/09, in regard to mortgage-backed securities, collateralized debt obligations and credit default swaps, all of which couldn’t be sold after they exposed their holders to massive losses.
Tranches – A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities.
Tranche is often used to describe a specific class of bonds within an offering wherein each tranche offers varying degrees of risk to the investor. For example, a CMO offering a partitioned MBS portfolio might have mortgages (tranches) that have one-year, two- year, five-year and 20-year maturities. It can also refer to segments that are offered domestically and internationally.
Two-Pack Hotels – A property that combines two hotels that operate separately but share economies of scale deriving from the sharing of resources such as back-of-house operations. Usually such properties combine two brands from one hotel chain, but there are examples of one building containing two flags from different hotel companies. Commonly referred to in the United Kingdom as “dual-brand hotels.” There also exist examples of three-pack hotels, although this property type is less common.