What is FAR (Floor Area Ratio) and How is it different from FSI (Floor Surface Index). The Floor Area Ratio (FAR) or Floor Space Index (FSI) is the ratio of the total floor area of buildings on a certain location to the size of the land of that location, or the limit imposed on such a ratio.

As a formula:

Floor Area Ratio(FAR) = (Total covered area on all floors of all buildings on a certain plot)/(Area of the plot).

Thus, an FSI of 2.0 would indicate that the total floor area of a building is two times the gross area of the plot on which it is constructed.

If the house is held for less than 24 months prior to its sale, it is termed as a short-term capital asset and any gain arising from the sale is treated as a short-term Capital Gain. There are no tax exemptions for short-term Capital Gains and one needs to pay it according to the applicable tax slab.

However, if the property is sold after holding it for or more than 24 months, it is treated as a long-term capital asset and the gain arising from it is called the long-term Capital Gain. Such gains attract a flat Tax rate of 20%.

An easy way to understand what a commercial real estate broker does is to imagine that they are the “middle man” between a business and a property or building they want to purchase or lease for their business.

A franchise consultant is a professional who provides guidance and expertise to individuals or businesses interested in entering or expanding within the franchising industry. Their role involves assisting both franchisors (those offering the franchise) and franchisees (those interested in buying and operating a franchise).

Mutation means to change/replacement of the name of an individual or group of individuals in the revenue records or municipal records as the owner of the property.

ARR (Average Room Rate) is the average income generated per room occupied in a given time period, calculated by dividing total room revenue by the number of rooms sold.

REVPAR (Revenue Per Available Room) is a more comprehensive metric, considering both occupied and vacant rooms. It is calculated by dividing total room revenue by the total number of available rooms, whether occupied or not.

In essence, ARR focuses on revenue generated per occupied room, while REVPAR provides a broader view by considering revenue in relation to all available rooms, providing a more comprehensive measure of a hotel's performance.

AOP stands for Annual Operating Plan. An annual operating plan in a hotel typically includes budgeting, revenue projections, expense forecasts, marketing strategies, staffing plans, and capital expenditure projections. It serves as a roadmap for the hotel's operations and financial goals for the upcoming year.

In the context of hospitality, SOHO can refer to Small Office/Home Office, which represents a trend where individuals or businesses provide accommodations or services tailored for those who work remotely or have small office setups within their lodging. This could include hotels, hostels, or other establishments catering to the needs of individuals combining work and travel.