02. KPIs

Question 1

Average Daily Rate (ADR)

Answer 1

Room revenue / total occupied room

Question 2

Occupancy Percentage

Answer 2

Total occupied room / total available room

Question 3

Revenue per Available Room (RevPAR)

Answer 3

• The average revenue generated by each available room during a period of time.
• ADR * Occu% = RevPAR
• Total Room revenue / Total Rooms Available for sale = RevPAR

Question 4

Total Revenue per Available Room (TRevPAR)

Answer 4

• Sums up all the revenue factors in a hotel and provide an overview of the hotel’s general performance.
  Total revenue / total available room

Question 5

Revenue per Available Customer (RevPAC)

Answer 5

• Useful when comparing two groups, a change in perspective from an “asset play” based on hotel properties and rooms, to a focus on leveraging customer equity. This is when you multiply group nights with all the contribution margins of rooms, F&B and services.
  Room revenue / number of guess inhouse.

Question 6

Revenue per Occupied Room (RevPOR)

Answer 6

• Average revenue generated by every occupied room.

- Total revenue / Total occupied rooms = RevPOR

Question 7

Net Rooms Revenue per Available Room (NRevPAR)

Answer 7

Room revenue – Distribution Cost, transaction fee & travel agency commissions.
- Net Room Revenue / Available Rooms = NRevPAR

Question 8

Gross Operating Profit per Available Room (GOPPAR)

Answer 8

• Average gross operating profit generated by each available guest room during a specific period of time. Also written as GOPAR
• Gross operation profit / Total rooms available for sale = GOPPAR
• GOP = Total revenue – Management Controllable Expense
• Total revenue/total occupied rooms = RevPOR
  o Unless otherwise stated, the revenue figure utilised for RevPOR calculations consists of “all rooms and non-rooms revenue”

Question 9

Market Penetration Index (Occupancy Index)

Answer 9

How our Occupancy compares to our Market
FORMULA MPI = Hotel Occupancy / Market Occupancy
CALCULATION MPI = 62% / 64% = 0.97
When a hotel achieves more than 1, then it is receiving more than its fair share.

Question 10

Average Rate Index (ADR Index)

Answer 10

How our ADR (Average Daily Rate) compares to our Market
FORMULA ARI = Hotel ADR / Market ADR
CALCULATION ARI = $82.36 / $76.56 = 1.08
When a hotel achieves more than 1, then it is receiving more than its fair share.

Question 11

Revenue Generation Index (RevPAR Index)

Answer 11

How our RevPAR compares to our Market
FORMULA RGI = Hotel RevPAR / Market RevPAR
CALCULATION RGI = $51.06 / $49.38 = 1.03
When a hotel achieves more than 1, then it is receiving more than its fair share

Question 12

Rate Efficiency Indication

Answer 12

Indication of average daily rate (ADR) achieved against a benchmark (i.e. Transient ADR vs. Best available rate [BAR] ADR)
and if there is a large gap in between the ADR and the BAR, that means you have a high rate efficiency. Meaning that you are able to achieve a higher mark up, rather than letting the customers to talk down your price too much.

Question 13

Room Efficiency indication

Answer 13

Specific Room type ADR vs. either Total Room ADR or vs an “optimal” benchmark set by the revenue team

Question 14

Sell-out Efficiency indication

Answer 14

how many times the hotel was sold out in period over 95%. This indicates if the business is managed correctly in high demand periods

Question 15

Channel efficiency indication

Answer 15

the relation between the rates achieved from our distribution channels vs. The overall average rate. This could be measured by channel vs. Overall distribution rates or against a wider spectrum of rates.

Question 16

STAR Index =
My Prop =
Comp Set =

Answer 16

(My Prop/ Comp Set) * 100
(Comp Set * Index) / 100
(My Prop / Index) * 100

Question 17

RevPAR =
Occupancy =
ADR =

Answer 17

(Occupancy * ADR) /100
(RevPAR / ADR) * 100
(RevPAR / Occupancy) * 100