3 essential hotel KPIs you need to measure

Grab the elevator to the penthouse with our guide to the three essential KPIs your hotel needs for business success. If you want to upgrade your hotel from Fawlty Towers to the Ritz then this is the guide for you.

1. Occupancy %: Your rooms are your main resource. Therefore a low percentage indicates that you are making poor use of your available resources. Work on increasing this percentage to generate additional revenue from those rooms which are currently being underutilised.

2. Room revenue per available room: Commonly referred to as REVPAR. This is KPI examines how much revenue is being generated from all of your hotel’s rooms – occupied or not. As with all revenue-based metrics, a higher figure should be aimed for.

3. Average daily rate: Average daily rate concentrates purely on how much you are receiving from your occupied rooms. This allows you to see how efficiently the hotel is translating room occupancy into revenue for the business and gives you a truer picture of how much revenue is being generated on average each day. The higher this figure, the more you are earning over time.

Look through our KPI Library for more metrics to help your business succeed.
Find out how to measure occupancy % here.
Calculate room revenue per available room here.
Work out your average daily rate here.