Hotel Revenue Management Metrics

The video tutorial explains key hotel metrics such as occupancy, ADR, and RevPAR. It begins with an example of a hotel with 150 rooms, 80 of which are sold, generating a total room revenue of $14,000. The occupancy rate is calculated as the ratio of rooms sold to total available rooms, resulting in 53.3%. The ADR is determined by dividing total room revenue by rooms sold, yielding $175. RevPAR can be calculated by multiplying ADR by occupancy or dividing total room revenue by total available rooms, both resulting in $93.3. The tutorial also discusses how changes in total room revenue affect these metrics, emphasizing their role as revenue indicators.

What is the total number of rooms in the hotel example?

• 200

• 250

• 150

• 100

How much is the total room revenue in the initial example?

• $12,000

• $14,000

• $18,000

• $16,000

What is the formula for calculating occupancy?

• Total rooms sold divided by total available rooms

• Total room revenue divided by total rooms sold

• Total room revenue divided by total available rooms

• Total available rooms divided by total rooms sold

What is the occupancy rate in the example provided?

• 60.0%

• 53.3%

• 50.0%

• 45.5%

How is ADR calculated?

• Total available rooms divided by total room revenue

• Total room revenue divided by total rooms sold

• Total room revenue divided by total available rooms

• Total rooms sold divided by total room revenue

What is the ADR in the example?

• $150

• $160

• $170

• $175

Which of the following is a method to calculate RevPAR?

• ADR divided by occupancy

• Total room revenue divided by total rooms sold

• ADR multiplied by occupancy

• Total rooms sold divided by total available rooms

What is the RevPAR in the example?

• $95.0

• $93.3

• $90.0

• $85.0

What happens to ADR and RevPAR if the total room revenue increases to $16,000?

• Both decrease

• Only RevPAR increases

• Both increase

• Only ADR increases

What is RevPAR an indicator of?

• Revenue

• Total available rooms

• Occupancy rate

• Total rooms sold