5. Average Daily Rate (ADR)
• Average daily rate is a simple metric used to calculate
the average rate per occupied room
• ADR = Room Revenue / Number of Rooms Sold
6. Revenue Per Available Room (RevPAR)
• RevPAR can predict how successfully your average rate
is at filling available rooms and therefore provides a
constructive view on how well your hotel is operating
RevPAR = Room Revenue / Number of Rooms Available
OR
RevPAR = Average Daily Rate * Occupancy Rate
7. Occupancy Rate
Your occupancy rate is the most basic metric which you can run and it can be applied to
any specific period of time you want to analyse; daily, weekly, monthly, or yearly.
Occupancy Rate = Total Number Of Occupied Rooms / Total Number Of Available Rooms
8. Average Length Of Stay (LOS)
• This metric identifies the average length of stay of your guests, which is
calculated by dividing the total number of occupied room nights by the
number of bookings. A higher number is better, as a low LOS metric means
reduced profitability due to increased labour costs.
• LOS = Total Occupied Room Nights / Number Of Bookings
9. Gross Operating Profit Per Available Room
(GOPPAR)
• GOPPAR is the gross operating profit per
available room or, more clearly, the total
revenue of the hotel less expenses incurred
earning that revenue, divided by the number
of available rooms
• GOPPAR = Total Room Revenue – Total Room
Expenses / Number Of Available Rooms
10. Cost Per Occupied Room – CPOR
Cost per occupied room helps you to determine how efficient your
property is per sold room
CPOR = Total Rooms Departments Cost / Total Rooms Sold
11. Adjusted Revenue Per Available Room (ARPAR)
From the formula mentioned above, we noticed that RevPAR doesn’t really
give us any information about the real profitability, therefore, hoteliers
nowadays should implement a more accurate indicator, such as ARPAR, which
is a clear reflection of the ‘bottom line profit’.
ARPAR = ADR – Var costs per occ room + Additional Revenues Per Occupied
Rooms x Occupancy
12. Balanced Scorecard in Chained-Brand Hotels
• Hilton Worldwide Quality Balanced Scorecard and Connie
Award
• According to the Hilton Worldwide, the Balanced Scorecard
is used widely to reward teamwork and achieve customer
service excellence. Based on the year-end evaluation best
hotels are recognized with Connie Award.
• The winners are selected according to:
– Total Quality Scorecard (TQS),
– Loyalty score according to SALT (Satisfaction and Loyalty
Tracking)
– The quality assurance (QA) score.