Is LTM the same as TTM?

Yes. LTM (Last Twelve Months) and TTM (Trailing Twelve Months) are used interchangeably to describe a rolling 12-month window of results.

How do I compute LTM ADR, Occupancy, and RevPAR?

Aggregate nightly or monthly data for the most recent 12 months: LTM ADR = total room revenue ÷ rooms sold; LTM Occupancy = rooms sold ÷ rooms available; LTM RevPAR = total room revenue ÷ rooms available.

What’s the difference between LTM and FY (fiscal year)?

FY results are fixed to your fiscal calendar. LTM rolls each month, always reflecting the most current 12 months—which is helpful in seasonal markets and for fast-changing trends.

Should I normalize one-off items in LTM?

Yes. Clearly flag and adjust for unusual closures, major renovations, or extraordinary events so LTM remains a fair representation of ongoing performance.

My property launched less than a year ago—how do I use LTM?

Use whatever history you have and annualize with care, or supplement with comp-set and market data. Disclose assumptions and note that ramp-up periods can overstate or understate true run-rate.

How does LTM relate to valuation metrics like Cap Rate or EV/EBITDA?

Investors often pair LTM NOI with Cap Rate for real-estate valuation and LTM EBITDA with enterprise value multiples for operating companies. The aim is to align the most recent, normalized earnings with the chosen multiple.

Last Twelve Months (LTM)

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Definition: What Does LTM Mean?

LTM (Last Twelve Months) is a rolling 12-month window used to analyze the most recent performance instead of waiting for the next fiscal year close. In vacation rentals and hotels, teams report LTM ADR, occupancy, RevPAR, gross booking revenue (GBR), and LTM NOI or EBITDA to capture current momentum and seasonality.

Because LTM “rolls,” it automatically incorporates the newest month and drops the oldest, producing a fresher signal for pricing decisions, budgeting, lending, and valuation. In semantic terms, LTM sits alongside entities like GAAP/IFRS reporting, EBITDA, and real-estate concepts such as NOI and Cap Rate.

Why LTM Matters

Trend clarity: Smooths out month-to-month noise while staying more current than fiscal-year summaries.
Seasonality awareness: A full cycle captures peak and shoulder periods; ideal for lakeside and ski markets. See Seasonality.
Operational decisions: Ground rate moves and promos in verifiable performance—key to revenue management.
Capital decisions: Lenders and investors lean on LTM NOI/EBITDA for underwriting, especially when markets shift quickly.

How to Calculate LTM Metrics

Use consistent definitions and data from your PMS and accounting system:

LTM Revenue: Sum monthly revenue for the most recent 12 months (or last four quarters).
LTM ADR: Total room revenue ÷ total rooms sold (12-month period).
LTM Occupancy: Rooms sold ÷ rooms available (12-month period).
LTM RevPAR: Total room revenue ÷ rooms available (12-month period).
LTM NOI / EBITDA: Aggregate 12 months of NOI/EBITDA; normalize for unusual items (major renovations, one-time subsidies, disaster closures).

Example (hotel revenue): Q1–Q4 revenues of $2.5M, $3.0M, $2.8M, and $3.2M produce LTM revenue of $11.5M. Repeat the approach for ADR, occupancy, and RevPAR using 12-month totals.

Practical Uses in Travel & Hospitality

Revenue strategy: Compare LTM ADR and occupancy to spot mix shifts; tighten minimum stays and adjust event pricing accordingly.
Benchmarking: Rank properties by LTM RevPAR to identify underperformers and set coaching goals.
Valuation & lending: Pair LTM NOI with market Cap Rates for quick value checks; use LTM EBITDA in EV/EBITDA comparisons for branded operators.
Portfolio management: Monitor LTM GBR versus budget to time CapEx, staffing, and marketing pushes.

Good Practices & Caveats

Normalize outliers: Tag one-offs (renovations, closures, city-wide events) so LTM reflects sustainable performance.
Be transparent: Document methodology (cash vs. accrual, FX rates, fee treatment) for comparability across assets and periods.
Keep it reconciled: Tie PMS room stats to accounting revenue; ensure rooms available reflect true inventory (out-of-order nights removed).
Use with forward data: Pair LTM trends with on-the-books pace and search demand to avoid backward-looking bias.

Examples

Vacation rental portfolio: LTM RevPAR rises 7% YoY while LTM occupancy is flat—signal to lift base rates and refine LOS discounts rather than chase volume.
Hotel acquisition screen: LTM NOI margin improves 300 bps after reflagging; buyer applies market Cap Rate to LTM NOI for a quick value sense-check, then builds a pro forma.

Related Terms

Frequently Asked Questions

How often should I update LTM?

Monthly. Close the prior month, roll the window forward, and refresh dashboards so pricing and planning reflect the newest information.

Which accounting basis should I use—cash or accrual?

Choose one and stay consistent. Accrual (recognizing revenue when the stay occurs) usually aligns better with ADR/RevPAR analytics; disclose if you use cash.

Do currency changes affect LTM comparisons?

Yes. For multi-currency portfolios, convert with a consistent FX policy (e.g., monthly average rates) and disclose methodology to preserve comparability.

How do partial months or missing data impact LTM?

Avoid partials. If a month is incomplete, wait for close or clearly mark provisional status. Fill gaps from your PMS where possible and document any estimates.

Can LTM hide inflection points?

It can. LTM is inherently backward-looking. Always pair it with forward indicators (on-the-books occupancy, booking pace) to catch turns early.

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