Understanding Hotel Metrics: Occupancy, ADR, RevPAR, and GOPPAR

Welcome to our educational video on fundamental hotel metrics! In this concise yet informative presentation, we delve into the essential concepts of Occupancy, ADR, RevPAR, and GOPPAR – crucial performance indicators in the hospitality industry.

🏨 Total Available Rooms - The Foundation:
Before we explore these metrics, it's vital to grasp the concept of Total Available Rooms. This metric sets the stage for all subsequent calculations. It represents the total number of rooms within a hotel's inventory.

🛏️ Occupancy (OCC) - Maximizing Room Sales:
Occupancy, expressed as a percentage, illustrates the proportion of available rooms that were sold during a specific time frame. The formula is simple: divide the number of rooms sold by the total number of rooms available. Whether you're analyzing daily, weekly, monthly, or yearly data, OCC is a key performance indicator.

🏢 ADR (Average Daily Rate) - Unifying Room Rates:
ADR or Average Room Rate is the average price guests pay for one night's stay. It's calculated by dividing the total room revenue by the total number of rooms sold. ADR condenses the diversity of guest rates into a single, representative figure, and it can be applied across various time periods.

📊 RevPAR (Revenue per Available Room) - A Comprehensive Insight:
RevPAR is the cornerstone of hotel performance analysis. It combines both occupancy and ADR while accounting for unsold rooms, providing a holistic view of profitability. To calculate RevPAR, divide the total room revenue by the total number of rooms available. Alternatively, you can multiply OCC by ADR for any given period. Seasoned hoteliers often start with RevPAR when assessing a hotel's health.

💰 GOPPAR (Gross Operating Profit per Available Room) - The Bottom Line:
GOPPAR measures a hotel's operating profitability concerning the available rooms. It's a pivotal indicator for assessing a hotel's performance. Revenue managers use GOPPAR to determine whether the hotel's operations are meeting expected returns. Calculate it by subtracting the total variable cost from the total revenue, then divide by the total available rooms.

These key performance indicators (KPIs) are indispensable tools for anyone involved in the hotel industry. In our upcoming videos, we'll leverage these metrics to analyze the market performance of hotels. Stay tuned!

If you have any questions or comments, please feel free to ask in the comments section below. Your engagement is greatly appreciated.

Thank you for watching and expanding your knowledge of hotel management metrics! 🏨📈🌟
0:00 Hotel KPIs
1:07 Total Available Rooms
1:21 Hotel Occupancy
1:40 Total Rooms Revenue
2:16 ADR Average Daily Rate
2:43 RevPAR
3:21 GOPPAR
#ADR #RevPAR #GOPPAR#hotelrevenuemanagement

[dinku]

That is extremely helpful for my front office operations research module. Thanks

[claudiahelenamarcon]

Thanks for the great and very clear explanation!

[pramodmohol]

thank you for your information its really easy to understand and learn excel formula as well. i also want to learn hotel budget and formulas use

[samchauhan]

How to calculate variable cost per room?

[claudegietz]

Isnt the ADR, total revenue / total rooms sold and not total rooms occupied because sometimes you might have a complimentary room or something?

[whatsupowa]

How to get the variable cost per room?

[cheriline]

Hello 👋 knowledgable content 🙏 pls help us in regards to forecasting formula ...

[raynerjedgotgo]

Very simple this one because I have a subject revenue management