Occupancy rate
Description: This measures the percentage of rooms occupied by guests. It is calculated by dividing the number of rooms sold by the number of rooms available for sale. Example: If a hotel has 100 rooms and sold 80 of them, the occupancy rate is 80%.
Formula: Occupancy rate = (Rooms sold / Rooms available) x 100
Example: Marriott International reported an occupancy rate of 55.4% in 2020.
Average Daily Rate (ADR)
Description: This measures the average room rate charged by the hotel. It is calculated by dividing the total room revenue by the number of rooms sold. Example: If a hotel's total room revenue is $10,000 and 80 rooms were sold, the ADR is $125.
Formula: ADR = Total room revenue / Rooms sold
Example: Hilton Worldwide reported an ADR of $123.82 in 2020.
Revenue per available room (RevPAR)
Description: This measures the hotel's overall revenue generating capacity. It is calculated by multiplying the occupancy rate by the ADR. Example: If a hotel has an occupancy rate of 80% and an ADR of $125, the RevPAR is $100.
Formula: RevPAR = Occupancy rate x ADR
Example: InterContinental Hotels Group reported a RevPAR of $45.90 in 2020.
Gross operating profit per available room (GOPPAR)
Description: This measures the hotel's overall profitability. It is calculated by subtracting the hotel's total operating expenses from its total revenue and then dividing by the number of available rooms. Example: If a hotel has total revenue of $100,000 and operating expenses of $70,000 and 80 rooms available, the GOPPAR is $375.
Formula: GOPPAR = (Total revenue - Total operating expenses) / Rooms available
Example: Hyatt Hotels Corporation reported a GOPPAR of $10.95 in 2020.
Average length of stay (ALOS)
Description: This measures the average number of nights guests stay at the hotel. Example: If a hotel has 200 room nights sold and 500 guests, the ALOS is 2.5 nights.
Formula: ALOS = Room nights sold / Guests
Example: Best Western International reported an ALOS of 2.09 nights in 2020.
Net promoter score (NPS)
Description: This measures the likelihood of guests to recommend the hotel to others. Example: If 100 guests were surveyed and 50 would recommend the hotel to others, the NPS is 50%.
Formula: NPS = % of Promoters - % of Detractors
Example: AccorHotels reported an NPS of 28 in 2020.
Employee satisfaction score (ESS)
Description: This measures the satisfaction level of employees. Example: If 100 employees were surveyed and 80 were satisfied with their job, the ESS is 80%.
Formula: ESS = % of Satisfied employees
Example: Marriott International reported an ESS of 80% in 2020.
Customer satisfaction score (CSS)
Description: This measures the satisfaction level of guests. Example: If 100 guests were surveyed and 80 were satisfied with their stay, the CSS is 80%.
Formula: CSS = % of Satisfied guests
Example: Four Seasons Hotels and Resorts reported a CSS of 89.7% in 2020.
