Many owners judge their year only by occupancy: “we were full.” But an accommodation can be full and make less. To understand what’s happening, you need three metrics.
1. Occupancy
Occupancy = nights sold ÷ nights available
If you have 10 rooms for 30 days, you have 300 available nights. If you sold 180, occupancy is 60%.
2. ADR (Average Daily Rate)
ADR = room revenue ÷ nights sold
If room revenue was €18,000 for the 180 nights, ADR is €100.
3. RevPAR (Revenue Per Available Room)
RevPAR = room revenue ÷ available nights (or: occupancy × ADR)
In the example: €18,000 ÷ 300 = €60. The same comes out as 60% × €100.
Why you need all three
RevPAR combines occupancy and price, so it’s the most useful metric for comparison. See a hypothetical example:
| Month | Occupancy | ADR | Nights | Revenue | RevPAR |
|---|---|---|---|---|---|
| Month A | 60% | €100 | 180 | €18,000 | €60.00 |
| Month B | 55% | €110 | 165 | €18,150 | €60.50 |
Month B had lower occupancy but slightly better RevPAR and less work (fewer room changes, less cleaning). If you looked only at occupancy, you’d draw the wrong conclusion.
How to use them
- Compare to the same month last year, not the previous month, because seasonality changes everything.
- Look at them by channel and room type, not just overall. That’s how you see where you’re losing.
- They’re not profit. They don’t include costs. For the real result you need cost allocation (commissions, cleaning, energy).
Don’t chase one metric
If you raise occupancy with very low prices, ADR drops. If you raise prices too much, occupancy drops. The goal is the balance that maximizes RevPAR and profit.
At HotelPoint, KPI reports show these metrics by period, channel, and room type. See how they look in a demo.