Key Operating Ratios

Question 1

(Rooms Sold / Rooms Available) × 100

Measures the percentage of available rooms occupied over a period, indicating how well the hotel is filling its rooms.

Answer 1

Occupancy rates

Question 2

Rooms Revenue / Rooms Sold

Reflects the average revenue generated per occupied room, useful for evaluating pricing strategies.

Answer 2

Average Daily Rate

Question 3

Rooms Revenue / Rooms Available OR Occupancy Rate × ADR

Combines occupancy and ADR to assess the hotel’s revenue generation capability.

Answer 3

Revenue per Available Room (RevPar

Question 4

Room Nights Sold / Number of Reservations

Shows the average number of nights guests stay, aiding in guest retention analysis.

Answer 4

Average Length of Stay (ALOS)

Question 5

Gross Operating Profit / Rooms Available

Provides a profitability measure by considering both revenue and costs.

Answer 5

Gross Operating Profit Per Available Room (GOPPAR)

Question 6

Total Room Department Costs / Rooms Sold

Shows the cost of servicing each occupied room, guiding expense management.

Answer 6

Cost Per Occupied Room (CPOR)

Question 7

Number of Check-Outs / Rooms Available

Measures how frequently rooms are vacated and re-occupied, indicating housekeeping efficiency

Answer 7

Room Turnover Rate