KPIs for Hotels
These are the KPIs a hotel tracks to understand occupancy, rate and profit per room. Three of them, occupancy, ADR and RevPAR, are linked and are read together.
The KPIs to track
Occupancy rate
Rooms sold divided by rooms available in the period.
Average daily rate (ADR)
Room revenue divided by the number of rooms sold, the average price actually paid for a room.
Revenue per available room (RevPAR)
Room revenue divided by rooms available, which equals ADR multiplied by occupancy.
Gross operating profit per available room (GOPPAR)
Gross operating profit divided by rooms available, which adds cost control to the revenue picture.
Booking cancellation rate
Cancelled bookings divided by total bookings made for the period.
Average booking lead time
The average number of days between making a booking and the arrival date.
Direct booking share
Bookings made directly with the hotel divided by all bookings, as opposed to those through agents or online travel sites.
Average booking value
Total room and ancillary revenue divided by the number of bookings, which shows how much each stay is worth.
Where the data usually lives
A property management system, a channel manager, the booking engine and the accounting system.
Measurement mistakes to avoid
- Rooms out of order should be taken out of rooms available consistently, or occupancy and RevPAR are understated.
- ADR should use room revenue only, without breakfast or taxes, or it is not comparable with other reports.
- Compare the same weekday mix and event dates when comparing with last year.
Questions to ask your data
You can type these as plain questions. SchemaChat turns each one into SQL against your connected database or uploaded file, runs it, and shows the SQL and the figures it used so you can check the answer before you share it. Check that the result matches how your business defines each KPI.
- What were occupancy, ADR and RevPAR for each month this year?
- What share of bookings came direct rather than through agents?
- Which room types have the lowest occupancy?
- How far in advance are guests booking for next month?