What they mean, how to calculate them, and ways to improve them. The past few years have been challenging for hotel owners. While 2020 and 2021 saw global travel grind to a halt due to lockdowns and restrictions, the hospitality industry in 2024 is navigating a period of recovery and ada...
Still, no matter which metric is used, the goal stays the same: To increase revenue and profits. In this post, we will discuss the formulas you can use to calculate RevPAR, the alternative KPIs, and offer strategies for increasing RevPAR — or GoPAR or ARPAR or whichever metric you pref...
Where RevPAR looks purely at room rate revenue, TRevPAR includes all the other forms of revenue that a hotel might generate, including from room service, the bar, the restaurant, airport pickups, day spas and more. In this way, TRevPAR can give you a truer sense of how much money you...
Find out all about Hotel Average Daily Rate, including what it is, how to calculate it, when best to use it, and when not to. Read more on the Mews blog.
Discover how to calculate your hotel's profit margin, industry averages, and how to increase profitability in 2025.
Also, because the factors used to calculate these ratios are specific to every single business, they can be misleading when used as generic benchmarks for other businesses in the same industry. As previously explained, a more appropriate ratio to assess hotel profitability is ROS (Return on Sale...
RGI = Your hotel’s RevPar / Average market RevPar How to Calculate RevPar First, decide on a period you will look at, which can be a week, month, or year. Then use one of the following formulas below to calculate RevPar:
A hotel’s occupancy rate is typically calculated on a daily, weekly, monthly, or yearly basis. To calculate the occupancy rate of a hotel, you need to follow these steps: Determine the total number of available rooms in the hotel during the period you are interested in measuring. For exam...
To calculate a hotel’s RevPAR, STR divides the total room revenue by the number of rooms available — occupied and unoccupied. Year-Over-Year (YOY) Comparison Displayed on the STR report in percent changes, the year-over-year comparison shows how your hotel performance this year measures up...
How to calculate it: RevPAR = TOTAL REVENUE FROM ALL ROOMS / TOTAL NUMBER OF ROOMS.For instance, if your hotel has 120 rooms, and you have received €23,500 in total from letting out some or all of these rooms, the calculation is €23,500/120 which gives a RevPAR of €195.83. Is...