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Hotel KPI Guide
Every Metric. Clearly Explained.

The essential guide to hotel performance metrics for hotel owners, GMs and revenue managers in India.

Hotel KPIs Explained

The Six Metrics Every
Hotel Owner Must Know

RevPAR
Revenue per Available Room
Total Room Revenue ÷ Total Available Rooms

RevPAR is the most important single metric in hotel commercial performance — capturing both occupancy and rate simultaneously. Growing RevPAR means growing total room revenue relative to your inventory.

ADR
Average Daily Rate
Total Room Revenue ÷ Total Rooms Sold

ADR measures the average price per occupied room. High ADR with lower occupancy can be more profitable than high occupancy with low ADR, depending on the cost of attracting additional bookings.

Occupancy %
%
Room Occupancy Rate
Rooms Sold ÷ Total Available Rooms × 100

Occupancy is the most visible metric but the least reliable measure of commercial performance in isolation. 95% occupancy at ₹2,000 ADR is a worse outcome than 75% occupancy at ₹5,000 ADR. Optimise for RevPAR, not occupancy alone.

TRevPAR
Total Revenue per Available Room
Total Hotel Revenue ÷ Total Available Rooms

TRevPAR expands RevPAR to include all hotel revenue — F&B, spa, events and ancillary services. For hotels with significant non-room revenue, TRevPAR is a more complete commercial measure.

GOP PAR
Gross Operating Profit per Available Room
Gross Operating Profit ÷ Total Available Rooms

GOP PAR connects revenue performance to owner returns. Revenue growth that does not convert to GOP improvement is commercially meaningless — this is the metric hotel owners care about most.

Channel Mix
%
OTA vs Direct Split
Direct Revenue ÷ Total Room Revenue × 100

Improving channel mix — shifting the split toward direct — is one of the highest-impact profitability improvements available to any hotel. Shifting 20% of OTA bookings to direct can save ₹4–6 Lakhs annually in commission.

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