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Dividing the total room revenue by total rooms occupied can give you a figure for your hotel’s ADR, though the ADR formula does not account for unsold or empty rooms. Revenue Per Available Room (RevPAR) RevPAR will help you measure the revenue generated over a period of time, just through room bookings in a hotel.
These metrics encompass a wide range of areas, from financial figures like revenue per available room (RevPAR) and average daily rate (ADR) to operational aspects such as occupancy rates and guest satisfaction scores. For example, you might set out to achieve a revenue lift of 10% year-on-year.
Key metrics like RevPAR and ADR help hoteliers understand revenue flow, optimize pricing, and measure how well their property is performing. Total Available Rooms (TAR) Total Available Rooms form the base for several hotel metrics, especially revenue-related ones. 👉 Read Also - Grow Guest House Bookings with Smart Tips 4.
The ADR is the average rate at which each room at the hotel was sold on a given day. It is calculated by taking the Average room revenue and dividing it by the total number of rooms sold. This, however, does not include rooms that are occupied by staff, under maintenance of the ones that are.
Hotel revenue. Revenue is what keeps your hotel open so having a goal aligned with your income is obviously important. For example, you might set out to achieve a revenue lift of 10% year-on-year. There are many metrics that support revenue KPIs. Calculate it by dividing your total revenue by occupied rooms.
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