🏨 Key Performance Indicators (KPIs) in hotels include:

• Occupancy Percentage
• Average Daily Rate (ADR)
• Revenue per Available Room (RevPAR)

📊 Occupancy Percentage: Measures how well inventory (rooms) is managed. Calculated as:

• Occupied Rooms ÷ Total Rooms
• Demand ÷ Supply

Example: 46.6% occupancy.

💰 Average Daily Rate (ADR): Indicates revenue management effectiveness. Calculated as:

• Revenue ÷ Occupied Rooms

Example: Revenue of $12,000 with 70 occupied rooms results in an ADR of $171.43.

📈 Revenue per Available Room (RevPAR): Represents revenue generated per room, regardless of occupancy. Calculated as:

• Revenue ÷ Total Rooms
• Occupancy Percentage × ADR

Example: Revenue of $12,000 with 150 total rooms results in a RevPAR of $80.

🔄 RevPAR is a key equalizer, combining occupancy and ADR. If revenue increases by 15%, RevPAR also increases by 15%.

Example: New revenue of $13,800 leads to a RevPAR of $92.

📅 RevPAR trends can indicate revenue changes year-over-year, making it crucial for hotel performance analysis.