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Hotel investment: What is a good hotel ROI?

Little Hotelier

The aim is to generate a hotel return on investment (or hotel ROI); money that you can either reinvest in the business or extract as profit. A hotel investment that delivers the goods Little Hotelier’s all-in-one booking and hotel management software can deliver an incredible ROI for your small, independent hotel: up to 63x!

ROI 98
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Hotel RevPAR Formula: Measure Performance in 2025

Hotelogix

Average Length of Stay (LOS) LOS measures how many nights guests typically stay. A longer average stay reduces turnover costs and increases profitability per booking.  This KPI is essential for owners and investors tracking ROI. 👉 Read Also - Hotel Loyalty Program Benefits for Growth 8.

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The role of data analytics in optimizing hotel operations

Cloudbeds

Basic KPIs include average daily rate (ADR) , occupancy (OCC), revenue per available room (RevPAR), and average length of stay (ALOS). Each channel generates valuable data on conversion rates and return on investment (ROI) to determine how best to allocate resources. Revenue management KPIs. Marketing KPIs.