Key takeaways
- ADR explains sold rate, not availability.
- Occupancy without margin can mislead.
- RevPAR combines rate and occupancy, not costs.
Calculate each measure correctly
ADR = lodging revenue ÷ sold nights. Occupancy = sold nights ÷ available nights. RevPAR = lodging revenue ÷ available nights. Treat tax and non-room charges consistently.
Read metrics together
High occupancy at low ADR can earn less than fewer bookings at a stronger rate. RevPAR compares inventory; add net margin for fees and operations.
Compare equivalent periods
Segment by month, weekday, channel and stay type. Document owner blocks and maintenance because changing the denominator can manufacture improvement.
OptimizationRevenue optimizationMexicoIntermediate
Frequently asked questions
- Does RevPAR include cleaning?
- It generally uses lodging revenue; define the rule and apply it consistently.
- Which metric matters most?
- No single one. Read RevPAR, margin, cash flow and operating quality together.
