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Hotel Metrics Fundamentals
Understand the essential numbers used to read hotel performance.
This collection contains 4 connected articles. Foundational concepts appear first so readers can build context before moving into operational and advanced topics.
What Is ADR?
Average daily rate (ADR) is the average rooms revenue earned for each revenue-generating room sold during a specific period. It is generally calculated by dividing rooms revenue by rooms sold.
Revenue Management · Hotel Performance MetricsWhat Is Hotel Occupancy?
Hotel occupancy is the percentage of available rooms that are occupied or sold during a defined period. A common formula is occupied rooms divided by available rooms, multiplied by 100.
Revenue Management · Hotel Performance MetricsWhat Is RevPAR?
Revenue per available room (RevPAR) is a hotel performance metric that shows rooms revenue generated for each available room, whether the room was sold or not. It can be calculated as rooms revenue divided by available rooms, or as ADR multiplied by occupancy expressed as a decimal.
Finance & Accounting · Profitability MetricsWhat Is GOPPAR?
Gross operating profit per available room (GOPPAR) measures a hotel’s gross operating profit across its available room inventory. It is calculated by dividing gross operating profit by available room nights.