Important KPIs For The Hospitality Industry - 2026

Most hotels collect plenty of data, but few truly know what those numbers actually say about their performance. Hotel KPIs like occupancy rate, RevPAR, ADR, and GOPPAR give a tangible shape to the patterns of your bookings, cancellations, and expenses. They show a measurable state of your hotel’s profitability and spot gaps that might otherwise go unnoticed.

Hotel key performance indicators turn raw information into direction. Understanding these numbers helps you make accurate decisions quickly, whether that’s adjusting room rates, rethinking promotions, or improving how your team operates.

In this article, we will look closely at the key hotel performance metrics and how they guide better revenue management, smarter strategy, and long-term growth of your hotel.

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What are hotel performance metrics and why do they matter?

Hotel performance metrics are measurable data points that track how a property performs in key areas like hotel revenue, occupancy, and guest satisfaction. They help you understand whether current strategies are actually driving growth or simply filling rooms without much profit.

When measured regularly, these key hotel metrics act as a reality check into your operation’s efficacy. They can:

• Show how well you are meeting evolving customer expectations, helping you improve services
• Measure financial health, remove guesswork, and guide hospitality businesses in setting realistic revenue goals
• Reveal whether budgeting and marketing strategies are effective or draining resources with little return
• Measure the impact of your marketing campaigns, showing which promotions drive the most bookings and which fall flat
• Show hospitality trends and seasonal fluctuations, and help you understand demand patterns for smarter pricing and staffing
• Find out which online travel agents are driving you the most profits so that you can cut down on commission fees from ineffective channels
• Highlight underperforming departments and services so you can fix gaps before they affect revenue and online reviews
• Measure performance and create benchmarks against competitors and past results

Hotel performance metrics matter because they give you definitive clarity into what’s working and what’s not. Without them, it’s easy to mistake activity for progress. But with them, every part of the operation, from housekeeping to hotel revenue management strategies, aligns with a clear goal: delivering consistent profits and better guest experiences.

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What are the most important revenue metrics for hotels?

Hotel revenue metrics show whether your rooms, rates, and resources are working together to generate expected profit. Understanding these numbers helps you spot trends, identify missed opportunities, and make smarter pricing decisions. Here are the five most important ones you must measure: 

1. Average daily rate (ADR)

Average Daily Rate or ADR shows how much revenue each of your occupied rooms generates in a given period. It’s one of the most common revenue metrics in the hotel industry and helps track how effectively you are pricing and selling your rooms.

Formula

ADR = Total room revenue ÷ Number of rooms sold

For example, if your hotel earns $20,000 from 100 rooms sold, your ADR is $200

Why it matters:

• Shows whether your room pricing matches market demand and guest willingness to pay
• Helps compare performance across seasons, marketing campaigns, and hospitality industry trends
• Offers insight into revenue trends that support better forecasting and pricing strategies

For example, let's say a nearby hotel’s ADR is $250 and yours is $180. In that case, you might be underpricing your rooms. Say your occupancy rate rises from 75% to 90% but ADR stays at $180, you are filling more rooms without actually earning more per stay.

It might look profitable at first. However, the costs of cleaning, utilities, and staff can cut into the extra revenue from higher occupancy, leaving your gross operating profit thinner despite being busier.

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2. Occupancy rate

Occupancy rate is the percentage of available rooms that are sold over a specific period. It gives a clear picture of demand and how well your property converts available inventory into booked and occupied rooms.

Formula

Occupancy Rate = (Number of sold rooms ÷ Number of available rooms) X 100

If your hotel sells 80 out of 100 available rooms, your occupancy rate is 80%.

Why it matters:

• Indicates how efficiently your rooms are being booked and utilized
• Helps assess demand patterns across seasons or events
• Reveals whether your pricing strategy is attracting enough guests

Let's say your occupancy rate is 60% during a peak season; it signals underperformance, and you should adjust pricing, promotions, and marketing efforts. On the other hand, an occupancy rate consistently above 90% suggests high demand. But it could also mean you have opportunities to increase room rates without losing bookings.

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3. Revenue per available room (RevPAR)

Revenue per Available Room, or RevPAR, is a hotel performance metric that measures how much of the hotel's room inventory is sold and the revenue generated from those bookings. It combines occupancy rate and ADR into a single metric, showing how well your hotel generates revenue from its total room inventory. 

Formula

RevPAR = Total room revenue ÷ Number of available rooms

Or, 

RevPAR = ADR x Occupancy rate 

For example, suppose your hotel earns $20,000 in revenue and has 100 available rooms. Your ADR is $250, and your occupancy rate is 80%. In that case, your RevPAR is $200

Why it matters:

• Reflects the overall revenue efficiency of your hotel, not just occupied rooms
• Highlights the balance between pricing and occupancy
• Helps you set the revenue generation index to compare performance against competitors

For instance, if your RevPAR is $150 while a competitor’s is $220, it indicates lower revenue generation per room, even if your occupancy rate is high.

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4. Total revenue per available room (TRevPAR)

Total Revenue per Available Room or TRevPAR measures your property’s revenue against total available rooms in your hotel. While RevPAR only considers room revenue, this hotel performance metric includes all your revenue streams, like food and beverage, spa services, and conference and banquet sales. That’s why you get a more holistic view of the hotel's financial performance.  

Formula

TRevPAR = Total hotel revenue ÷ Number of available rooms

If your hotel earns $50,000 in total revenue from rooms, dining, and other services, and has 100 available rooms, your TRevPAR is $500.

Why it matters:

• Shows how much each room contributes to total revenue, not just room sales
• Highlights areas where non-room services are underperforming
• Helps track whether extra services are adding real value

For instance, let’s say your TRevPAR is $450, while a competitor’s is $600, but both your average room rate and occupancy rate are roughly the same. This means their rooms, along with additional services, are generating more revenue per available room. This points to opportunities to improve your dining, events, and other offerings to boost total earnings.

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5. Average length of stay (ALOS)

Average Length of Stay, or ALOS, measures the average number of nights guests stay at your hotel during a given period. It helps identify whether guests are booking short stays or extended visits, showing how your rooms are being occupied over time.

Formula

ALOS = Total room nights ÷ Total number of bookings

Suppose your hotel records 300 room nights from 100 bookings. Then, your ALOS is 3 nights.

Why it matters:

• Indicates guest engagement and booking patterns
• Helps plan staffing, housekeeping, and inventory needs
• Guides pricing strategies for both short and long stays
• Design packages and services according to the popular booking lengths

For example, if your ALOS is 2 nights while a competitor’s is 4 nights, it shows guests at your hotel stay for shorter periods.

Now, tracking hotel metrics manually is time-consuming and error-prone. You must calculate these revenue metrics for each channel, while monitoring bookings, cancellations, and demand changes can be overwhelming. That’s a lot of work, but with roommaster Revenue Management, you can just automate it. 

Powered by ampliphi, our platform connects to your PMS and tracks metrics like ADR, RevPAR, and others automatically. It also offers real-time dynamic pricing across channels and gives rate recommendations to protect ADR and RevPAR. No need to spend time crunching numbers manually. 

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What profitability metrics should hotels track?

Profitability metrics measure how much money a hotel actually keeps after covering all its costs. Unlike revenue metrics that focus on incoming money, these metrics reveal what contributes to the bottom line and what drains resources. But you must know which metrics matter most; otherwise, you will waste time running behind irrelevant hotel KPIs while the impactful insights sit unnoticed. 

Here are the hotel profitability metrics you should track regularly: 

1. Gross operating profit per available room (GOPPAR)

GOPPAR measures the profit you generate per available room after deducting operating expenses from total revenue.

Formula

GOPPAR = (Total revenue − Operating expenses) ÷ Number of available rooms

For example, if your hotel earns $100,000 in total revenue, spends $60,000 on operating costs, and has 100 rooms available, GOPPAR = ($100,000 − $60,000) ÷ 100 = $400.

Why it matters:

• Shows true profitability per room, not just revenue
• Highlights which days, room types, or services are most profitable
• Guides pricing and operational decisions to maximize profit

Suppose your total GOPPAR increases even when the hotel occupancy rate stays the same. This shows that your hotel is generating more profit per available room, indicating effective cost management and better pricing.

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2. Cost per occupied room (CPOR)

CPOR measures the direct cost of servicing each occupied room in your hotel. This number includes the expenses of housekeeping, utilities, and amenities.

Formula

CPOR = Total room operating costs ÷ Number of rooms sold

Let's say your operating costs are $15,000 for 100 rooms sold. Your CPOR will be $15,000 ÷ 100 = $150.

Why it matters:

• Shows the actual cost of maintaining each occupied room
• Helps compare costs against ADR and RevPAR to check profit margins
• Identifies areas where you can cut down costs without affecting guest experience

If CPOR rises while ADR stays the same, profit per room decreases. This shows that you must control costs.

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3. Net profit margin

Net profit margin measures the percentage of total revenue that you get as profit after all expenses, taxes, and fees.

Formula

Net profit margin = (Total profit ÷ Total revenue) × 100

For example, the net profit margin for a total revenue of $100,000 and a net profit of $25,000 will be: $25,000 ÷ $100,000 × 100 = 25%.

Why it matters

• Guides long-term decisions on investments and expansion
• Helps measure profit improvement over a period 
• Helps benchmark performance against competitors

To make it simpler, suppose two hotels have similar revenue but different net profit margins. The higher-margin hotel is managing costs better and generating more real profit.

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4. Revenue per employee 

Revenue per employee measures the revenue each of your staff members generates over a specific period. It’s one of the most important hospitality industry KPIs, showing profitability and labor efficiency.

Formula

Revenue per employee = Total revenue ÷ Number of staff members

Let’s say your total revenue is $50,000 and the hotel has 25 staff. Your revenue per employee will be: $50,000 ÷ 25 = $2,000 per staff member.

Why it matters:

• Shows how effectively staff contribute to revenue
• Identifies over- or understaffing
• Supports scheduling and labor cost decisions

A low revenue per employee compared to similar hotels indicates inefficient staffing or underperformance in revenue-generating departments.

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How do hotels benchmark against competitors?

Benchmarking against competitors helps you understand your hotel’s market performance and identify areas of improvement. Sure, tracking your own numbers is important.  But without context, it’s hard to know if those seemingly impressive numbers actually work in a broader competitive scenario. 

Comparing key metrics with similar properties reveals strengths, weaknesses, and opportunities, guiding pricing, marketing, and operational decisions. Here’s how to do it: 

Step 1: Assess market share with Market Penetration Index 

MPI measures your hotel’s occupancy against a set of competitors. It shows how much of the market demand your property captures.

Here is the formula: MPI = (Your hotel’s occupancy ÷ Competitor occupancy) × 100. That means, if your occupancy is 75% and the competitor's average is 60%, MPI = 75 ÷ 60 × 100 = 125.

You can use MPI to see whether your hotel is outperforming or underperforming in room occupancy. An MPI above 100 indicates strong market capture. But if you score below 100, it’s time to adjust pricing, services, and marketing efforts.

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Step 2: Measure revenue performance with Revenue Generation Index (RGI)

RGI compares your hotel’s RevPAR to the competitive set, showing how efficiently your property converts occupancy into revenue. The formula is: RGI = (Your hotel’s RevPAR ÷ Competitor RevPAR) X 100. Let’s say your RevPAR is $150 and the competitor's average is $200. Then your RGI will be 150 ÷ 200 × 100 = 75.

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Step 3: Compare pricing strategies with Average Rate Index (ARI)

This hotel KPI measures your ADR against competitors, showing how your pricing aligns with the market. You can use this formula: ARI = (Your ADR ÷ Competitor ADR) X 100. This means that if your ADR is $180 and the competitor's ADR is $200, the ARI is 180 ÷ 200 × 100 = 90.

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Step 4: Combine insights for an actionable strategy

Once you calculate MPI, RGI, and ARI, analyze them together. A high MPI with a low RGI indicates you are filling rooms but not maximizing revenue. A low ARI may explain the RGI gap. Use these insights to refine pricing, campaigns, and operational decisions. If you keep at it consistently, your hotel’s market performance will improve.

But again, doing these steps manually takes up a lot of time. And running a hotel scarcely leaves you with any time to spare. However, with roommaster, you can run constant competitor analysis automatically.  

Powered by ampliphi, our AI-powered Hotel PMS monitors competitor pricing across your market. It automatically tracks rate changes and market positioning. This way, you never miss an optimum pricing opportunity. 

The AI-powered system recommends dynamic pricing according to competitor data. The best part is that you can set pricing rules and just automate rate changes.

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What marketing and distribution metrics matter most?

Marketing and distribution metrics measure how well your hotel attracts and converts guests across all your channels. Tracking them answers important marketing performance-related questions, like:

• Which campaigns actually drive bookings?
• How much do you spend per guest?
• Is your reliance on OTAs eating into profits?

Here are some of the hotel KPIs for marketing and distribution you must track:

1. Conversion rate

The conversion rate shows how many of your website visitors actually book a room or service at your hotel. It’s a quick way to tell if your site and marketing are doing their job or just bringing empty traffic.

Formula

Conversion rate = (Number of bookings ÷ Number of website visitors) X 100

For example, if 500 bookings come from 10,000 visitors, your conversion rate is 5%.

Why it matters

• Highlights how effectively your website, booking engine, and online travel agencies turn visitors into paying guests
• Shows how well your marketing campaigns and offers are working
• Helps identify and address friction and drop-off points in the booking process

If traffic grows but conversion drops, it signals poor user experience, irrelevant targeting, or pricing mismatches.

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2. Distribution cost percentage

Distribution cost percentage measures how much of your revenue goes toward commissions, listing fees, and other channel costs. It tells you whether your distribution strategy is profitable or too dependent on third parties.

Formula

Distribution cost percentage = (Total distribution costs ÷ Total room revenue) X 100

For instance, you spend $8,000 on OTA commissions and earn $40,000 in room revenue. In that case, your distribution cost is 20%.

Why it matters

• Shows how much revenue is lost to third-party channels
• Helps improve direct booking strategies
• Guides OTA partnerships and pricing optimization

High distribution costs can cut profits even when bookings rise, showing the need to strengthen direct sales.

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3. Direct booking ratio

The direct booking ratio measures the share of bookings made directly through your website, calls, and booking engine, rather than through OTAs. It’s a strong indicator of how well your marketing builds trust and repeat demand.

Formula

Direct booking ratio = (Direct bookings ÷ Total bookings) × 100

Suppose 300 out of 1,000 total bookings come from your website. Then, your direct booking ratio is 30%.

Why it matters

• Quantifies your dependency on OTAs
• Measures brand strength and marketing effectiveness
• Improves profitability since direct bookings skip commission fees

A higher ratio means stronger brand loyalty and better margins per booking

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4. Customer acquisition cost (CAC)

Customer acquisition cost shows how much you spend to attract each new guest. It helps you understand whether your marketing budget is being used efficiently or wasted on low-return and ineffective channels.

Formula

CAC = Total marketing spend ÷ Number of new customers acquired

Let’s say you spend $5,000 on ads and gain 250 new guests. Then, your CAC is $20.

Why it matters

• Tracks the efficiency of marketing investments
• Helps balance spend between paid and organic booking channels
• Supports better budget planning for seasonal campaigns

If CAC keeps rising, you should refine your targeting and focus on repeat guests through loyalty offers.

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What guest satisfaction metrics should hotels monitor?

Guest satisfaction metrics show how well a hotel meets guest expectations before, during, and after their stay. They detect patterns in service quality, staff performance, and overall guest experience. You can spot weak points in the guest journey and service early on, and address issues as soon as they arise. This builds stronger brand identity and loyalty, turning happy guests into repeat customers.

But is going through online reviews and occasional guest surveys enough? No. You must track these hotel KPIs to measure guest satisfaction and experiences:

1. Net promoter score (NPS)

Net Promoter Score measures how likely your guests are to recommend your hotel to others. It’s one of the simplest ways to gauge loyalty and overall satisfaction. 

You can collect NPS through a single-question survey: “How likely are you to recommend our hotel to a friend or colleague?” Guests will respond on a scale of 0 to 10. Those who score 9–10 are Promoters, 7–8 are Passives, and 0–6 are Detractors. A higher score means more satisfied guests who are likely to return and spread positive word-of-mouth.

Formula

NPS = Percentage of promoters − Percentage of detractors

For example, if 60% of guests are promoters, 20% are detractors, and the rest are neutral, your NPS is 40.

Why it matters

• Shows guest loyalty and satisfaction at a glance
• Helps predict repeat business and referral potential
• Provides a quick benchmark against competitors

A consistently high NPS means guests not only enjoyed their stay but are likely to return or recommend your hotel.

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2. Guest satisfaction score (GSS)

Guest satisfaction score captures overall guest feedback through post-stay surveys and review platforms. It reflects the average satisfaction level across all responses.

Formula

GSS = (Total satisfaction points ÷ Total responses) × 100

Let’s say your hotel scores 4.5 out of 5 on average from 200 guests. Then, your GSS is 90%.

Why it matters

• Highlights areas where the guest experience can improve
• Helps monitor service consistency over time
• Strengthens online reputation

A rising GSS often signals better staff performance and improved amenities, which directly impact repeat bookings.

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3. Complaint resolution time

Complaint resolution time tracks how long it takes your team to respond to and resolve guest issues. It reflects service efficiency and accountability.

Formula

Average resolution time = Total time to resolve complaints ÷ Number of complaints

For example, if 20 complaints take your team a total of 100 hours to resolve, your average time is 5 hours.

Why it matters

• Indicates your service responsiveness and guest care quality
• Reduces negative reviews and dissatisfaction
• Encourages operational improvements across departments

Faster resolution times usually lead to higher satisfaction and better long-term guest relationships.

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What operational efficiency metrics should hotels track?

Operational efficiency metrics track how well a hotel manages its day-to-day processes, costs, and staff performance. These hotel key performance indicators help spot waste, control expenses, and keep operations running smoothly without hurting guest experience. Here are the important KPIs you must measure: 

1. Labor cost percentage

The labor cost percentage shows how much of your total revenue goes into staffing. It helps balance staff expenses and maximize profits.

Formula

Labor cost percentage= (Total labor costs ÷ Total revenue) × 100

Let’s say you spend $25,000 on labor and earn $100,000 in revenue. Your labor cost percentage is 25%.

Why it matters

• Helps manage staffing costs relative to revenue
• Keeps payroll aligned with seasonal demand
• Prevents overstaffing or service shortages

A sudden increase often signals inefficiency or low productivity.

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2. Energy cost per occupied room

This metric tracks how much energy expense each occupied room generates.

Formula

Energy cost per occupied room = Total energy cost ÷ Number of occupied rooms

Suppose your monthly energy costs are $10,000 and 2,000 rooms were occupied. In that case, your energy cost per room is $5.

Why it matters

• Highlights energy waste and efficiency opportunities
• Helps improve profits
• Supports smarter sustainability planning

High energy costs might point to equipment issues and outdated systems.

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3. Maintenance cost per room

This shows how much is spent on upkeep for each available room.

Formula

Maintenance cost per room = Total maintenance costs ÷ Total rooms available

For example, if maintenance costs $15,000 for 300 rooms, that’s $50 per room.

Why it matters

• Helps plan maintenance budgets
• Detects cost spikes before they affect profits
• Links directly to guest comfort and room condition

Regularly tracking this hotel KPI keeps operations smooth and prevents costly breakdowns.

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How do you calculate hotel performance metrics?

Understanding how to calculate hotel performance metrics is one thing. Doing it efficiently and accurately is another.

Here’s how you can calculate hotel performance metrics without spending too much time:

• Use a centralized property management system: Invest in a PMS that tracks room sales, revenue, occupancy, and guest data in one place. It should give you accurate real-time numbers without spreadsheets or multiple tools
• Automate data collection and reporting: Automating reports reduces manual work and human error. Set up dashboards that pull data instantly so you can spot performance shifts before they affect revenue
• Segment and compare data: Break down performance by room types, season, and channel. This helps you understand which areas drive the most profit and where you are losing money
• Benchmark against competitors: Use metrics like Market Penetration Index and Average Rate Index to compare your hotel’s performance with similar properties in your market
• Connect marketing analytics: Sync your PMS with ad platforms to see which campaigns drive the most valuable guests. Tracking conversions and CAC helps optimize your marketing spend
• Review and adjust regularly: Hold regular reviews to compare actual performance with forecasts and update pricing, promotions, and staffing accordingly
• Choose accuracy over volume: Tracking too many numbers can blur focus. Stick to the KPIs that directly affect your revenue, profitability, and guest experience, and monitor them consistently

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What benchmarks should hotels target for each metric?

Benchmarking gives context to your performance metrics. It helps you see whether your hotel is doing well compared to similar properties in your market. While your exact targets will depend on location, season, and property type, here’s an average idea of what healthy benchmarks in the hotel industry look like:

- Average daily rate (ADR)

Aim for an ADR that’s close to or slightly higher than your local market average. A higher ADR shows good pricing strategy and brand strength, but sudden jumps can hurt occupancy. Keep an eye on competitor rates and adjust gradually to stay competitive.

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- Occupancy rate

Most hotels target a 65–80% occupancy rate. Business and city hotels often go higher during peak seasons. Consistently high occupancy paired with stable ADR growth signals balanced demand management.

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- Revenue per available room (RevPAR)

A RevPAR index above 100 is a good target to outperform your market peers. The goal is steady growth with both rate and occupancy, not one at the expense of the other.

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- Gross operating profit per available room

For profitable hotels, it typically sits around 40–50% of total revenue. Strong GOPPAR reflects healthy margins and efficient cost control, even during low-demand periods.

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- Net profit margin

Midscale hotels usually see 10 to 20% profit margins, while luxury and resort properties can reach 25 to 40%. Sustaining profitability within these ranges indicates smart expense management and solid pricing.

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- Net promoter score (NPS)

An NPS of 40 or higher is considered great in the hospitality industry. Anything above 50 signals excellent guest loyalty, while scores below 20 suggest you must fix service issues fast.

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- Labor cost percentage

Keep labor costs between 25 to 35% of total revenue. This balance maintains service quality without overspending. Full-service hotels might sit slightly higher due to staffing needs.

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How can technology help track hotel performance metrics?

You can only go so far with manual hotel KPI tracking. It’s messy, slow, and often inaccurate. Since you are putting so much effort into improving your hotel operations, why not do it right with the right technology? 

Property management systems like roommaster give you a clear view of every key performance indicator, from occupancy and RevPAR to profit margins and distribution costs. The system automatically calculates metrics using live data from your bookings, POS, and accounting tools. 

Powered by ampliphi, roommaster continuously monitors booking data, historical patterns, forward availability, competitor data, and even cancellation trends. This integration analyzes your hotel’s past performance, anticipates future demand, and offers rate recommendations to protect your ADR and RevPAR. That’s why hotels using roommaster report a 35% surge in RevPAR and 40% higher ADR while boosting hotel occupancy rate. 

Based on the analysis, our system recommends the best pricing for your hotel rooms. You can approve them manually or automate dynamic pricing. The update goes straight into your roommaster channel manager, booking engine, and PMS, keeping rates consistent across every channel. You never have to worry about duplicate or incorrect data. Plus, the AI-powered system continuously learns from your hotel performance metrics and suggests better pricing strategies over time!

“We use all kinds of reports to compare from this time to last year. You can pull future availability, future sales, being on the cloud I would say it has cut our workload like in half. I would definitely recommend roommaster.”

• Jason Barret, General Manager

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Automate hotel performance metric calculations with roommaster 

When tracked consistently, hotel performance metrics show a clear picture of your hotel’s financial health, guest satisfaction, and operational performance. However, the real advantage comes from connecting the dots, linking revenue performance, guest experience, and cost control to make better business decisions every single day.

roommaster simplifies hotel KPI tracking by pulling data from bookings, accounting, and POS into one intelligent dashboard. The system interprets them in real time, recommends rate changes, and automates updates across all channels. From RevPAR to occupancy rate, you see the full story of your hotel’s performance without digging through reports. With roommaster, you move from reactive damage control to proactive growth, turning every metric into a smart step toward higher revenue and better guest experiences.

Book a demo today and track every important hotel performance metric easily!

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FAQs

1. What is the difference between ADR and RevPAR?

ADR (Average Daily Rate) is the average income earned per occupied room, while RevPAR (Revenue Per Available Room) measures revenue across all rooms, whether sold or not. RevPAR gives a fuller picture of hotel performance because it combines both occupancy and room rate data.

2. What are the most common mistakes in tracking hotel metrics?

Common mistakes include tracking metrics in isolation, relying on outdated reports, ignoring competitor benchmarks, and not accounting for seasonality. Using an integrated system like roommaster helps avoid these errors by consolidating real-time data across all KPIs.

3. What is a good RevPAR for a hotel?

A good RevPAR depends on the market, location, and property type. However, a hotel should aim for steady growth month over month. Comparing RevPAR with competitors through tools like roommaster’s ampliphi integration helps you gauge real performance in your market.

4. How often should hotels track performance metrics?

Hotels should track performance metrics daily for revenue-related data and weekly or monthly for profitability and guest satisfaction. roommaster automates this tracking, providing live dashboards that update key numbers like occupancy, ADR, and RevPAR in real time.

5. What is GOPPAR and why is it important?

GOPPAR (Gross Operating Profit Per Available Room) shows how much profit each room generates after operating expenses. It’s crucial because it reflects true financial performance, not just revenue. A higher GOPPAR means better cost control and operational efficiency.

6. How do competitive indexes (MPI, ARI, RGI) work?

These competitive indexes measure your hotel’s performance against competitors.

• MPI (Market Penetration Index) = Your occupancy ÷ Market occupancy × 100
• ARI (Average Rate Index) = Your ADR ÷ Market ADR × 100
• RGI (Revenue Generation Index) = Your RevPAR ÷ Market RevPAR × 100

7. How is TRevPAR different from RevPAR?

TRevPAR (Total Revenue Per Available Room) includes all revenue sources, including rooms, dining, spa, and other services, whereas RevPAR focuses only on room revenue. TRevPAR gives a more complete view of total income per room available.

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