Hotel Revenue Management Metrics you should know, beyond RevPAR

RevPAR is a key KPI, but it only gives a partial view of performance. Modern revenue managers use a broader set of metrics to get deeper insights. Here are some hotel revenue management metrics grouped into practical categories so they’re easier to use as a framework.

1. Revenue Efficiency Metrics (How well revenue is generated from rooms)

• ADR (Average Daily Rate) = Room Revenue ÷ Rooms Sold

• Occupancy Rate = Rooms Sold ÷ Rooms Available × 100

• RevPOR (Revenue per Occupied Room) = Total Revenue ÷ Rooms Sold

• ALOS (Average Length of Stay) = Room Nights Sold ÷ Bookings

  
  

2. Total Hotel Revenue Metrics (Beyond rooms)

• TRevPAR (Total Revenue per Available Room) = Total Revenue ÷ Rooms Available

• RevPAG (Revenue per Available Guest) = Total Revenue ÷ Guests

• RevPAM (Revenue per Available Square Meter of Space) = Event Revenue ÷ Space (m²/ft²)

• RevPASH (Revenue per Available Seat Hour) = Restaurant Revenue ÷ (Seats × Hours)

• RevPATH (Revenue per Available Treatment Hour) = Spa Revenue ÷ Treatment Hours

3. Profitability Metrics (Revenue minus costs)

• GOPPAR (Gross Operating Profit per Available Room) = GOP ÷ Rooms Available

• ARPAR (Adjusted RevPAR) = (ADR – Variable Costs) × Occupancy

• Net RevPAR = (Room Revenue – Commissions/Distribution Costs) ÷ Rooms Available

• CPOR (Cost per Occupied Room) = Total Room Costs ÷ Rooms Sold

• Contribution Margin per Room = (Room Revenue – Variable Costs) ÷ Rooms Sold

• EBITDA PAR (EBITDA per Available Room) = EBITDA ÷ Rooms Available

4. Competitive Performance Metrics (Market positioning)

• RGI (Revenue Generation Index) = Hotel RevPAR ÷ Market RevPAR × 100

• ARI (Average Rate Index) = Hotel ADR ÷ Market ADR × 100

• MPI (Market Penetration Index) = Hotel Occupancy ÷ Market Occupancy × 100

5. Guest Behavior & Retention Metrics (Customer focused)

• Repeat Guest Rate = Returning Guests ÷ Total Guests × 100

• Upsell & Cross-Sell Conversion Rate = Guests Who Buy Upsells ÷ Total Guests × 100

• Cancellation Rate = Cancelled Bookings ÷ Total Bookings × 100

• No-Show Rate = No-Shows ÷ Reservations × 100

• Revenue per Booking = Total Revenue ÷ Bookings

• Customer Acquisition Cost (CAC) = Marketing & Distribution Costs ÷ New Guests

• Guest Lifetime Value (LTV) = Avg Spend × Avg Stays × Retention Rate

6. Productivity & Operational Efficiency Metrics

• RevPAE (Revenue per Available Employee) = Revenue ÷ Number of Staff

• Staff-to-Room Ratio = Staff ÷ Rooms Available (operational efficiency benchmark)

These metrics help revenue managers see both revenue and profit, while also tracking market competitiveness, guest loyalty, and operational performance.