The Grassfield Tour

7 Key Performance Metrics for every Hotel

Every business has its metrics which helps organizations to measure their performance and help them to improve their sales. Same goes for the hotel industry. Hotel metrics are an important component which make it possible to keep track of the revenue stream and understand the performance of a hotel.

Following is the list of most important metrics that will help you to analyze your hotel’s market performance and create the suitable market strategies:

Average Daily Rate (ADR)

ADR or average daily rate is one of the most critical and important metrics in the hotel industry. It is simply the representation of average rate paid by guests per rooms for a specific day or any specific period of time. To calculate it you need to divide the total room revenue earned by the total number of rooms sold at the hotel.

Revenue Per Available Room (RevPAR)

RevPAR is a performance metrics used in the hotel industry to measure the profit and success of a hotel. It is calculated by dividing the total revenue of hotel divided by the total number of available rooms during the time period being measured.