September 24, 2025
Hotel KPIs like RevPAR, ADR, and GOPPAR are essential for understanding performance and profitability. This guide explains each formula with examples so you can calculate hotel revenue accurately and improve your strategy.
Key performance indicators (KPIs) help hoteliers evaluate performance, track growth, and spot areas for improvement. Whether you manage a boutique hotel or a large property, understanding these metrics is crucial to making better pricing and operational decisions.
Below, we’ll cover the most important hotel revenue formulas—RevPAR, ADR, GOPPAR, TrevPAR, RevPASH, occupancy rate, and ALOS—with definitions and real examples.
What it is: Revenue per available room (RevPAR) measures how much revenue each available room generates, regardless of whether it’s sold.
Formula:
Example:
A hotel with 150 rooms has an ADR of $100 and an 80% occupancy rate.
RevPAR = $100 × 0.8 = $80
📌 Tip: RevPAR only considers room revenue—it does not include income from F&B, spa, or other services.
The RevPAR Index compares your hotel’s performance to its competitive set.
Formula:
RevPAR Index = (Your RevPAR ÷ Market RevPAR) × 100
What it is: ADR measures the average revenue earned per sold room.
Formula:
ADR = Room Revenue ÷ Rooms Sold
Example:
A hotel in Amsterdam earns $3,000 from 40 sold rooms in one day.
ADR = $3,000 ÷ 40 = $75
📌 Difference from RevPAR: ADR only accounts for sold rooms, while RevPAR reflects all available rooms.
What it is: GOPPAR provides a more complete picture by including operating profit, not just revenue.
Formula:
GOPPAR = Gross Operating Profit ÷ Available Rooms
Example:
A 60-room hotel has 21,900 available rooms per year.
Total revenue = $4M, expenses = $1.5M → GOP = $2.5M.
GOPPAR = $2.5M ÷ 21,900 = $114
What it is: TrevPAR considers all revenue sources, including rooms, F&B, spa, and extras.
Formula:
TrevPAR = Total Revenue ÷ Available Rooms
Example:
A hotel earns $6,000 in one day with 60 rooms.
TrevPAR = $6,000 ÷ 60 = $100
📌 Unlike GOPPAR, TrevPAR does not factor in expenses.
What it is: A restaurant-focused KPI measuring seat profitability.
Formula:
RevPASH = Outlet Revenue ÷ (Seats × Opening Hours)
Example:
A hotel restaurant earns $13,000 in 10 hours with 60 seats.
RevPASH = $13,000 ÷ (60 × 10) = $21
What it is: Shows the percentage of occupied rooms over a specific period.
Formula:
Occupancy = Occupied Rooms ÷ Total Available Rooms × 100
📌 Important: 100% occupancy isn’t always profitable—if rooms are sold too cheaply, revenues may suffer. Balance occupancy with ADR for maximum profitability.
What it is: Measures how long guests stay on average.
Formula:
ALOS = Total Room Nights ÷ Total Bookings
Example:
100 room nights ÷ 55 bookings = 1.8 nights
If ALOS is unusually low, consider promotions for extended stays or minimum stay restrictions.
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Pricepoint’s AI-powered revenue management system automates pricing and tracks metrics like RevPAR, ADR, and occupancy in real time—helping hotels increase revenue by up to 25%.
