Hotel Revenue Metrics

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What does ADR stand for?

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Average Daily Rate

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What does ADR measure?

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The average revenue earned by a hotel per occupied room.

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What does RevPAR stand for?

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Revenue Per Available Room

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What does RevPAR measure?

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The average revenue earned by a hotel per available room.

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Trevpar stands for

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Total Revenue Per Available room

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TRevpar measures

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TRevPAR assesses the total income a hotel generates on a per-available-room basis

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GOPPAR stands for

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Gross Operating Profit per Available Room

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Formula of GOPPAR is

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GOPPAR = (Revenue from Rooms – Operating Expenses) / (Number of Available Rooms in a Period)

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ADR vs ARR

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• ARR and ADR are both metrics used to measure average revenue per room. ARR is typically used to look at a longer period of time, such as a week or month, while ADR is often used to look at a specific day or moment in time. ARR is calculated by dividing the total room revenue by the number of rooms sold, while ADR is calculated by dividing the total room revenue by the number of rooms sold on a given day.