The key to a successful hotel is to continuously innovate new ways to exceed guest expectations and have proper Key Performance Indicator (KPI)s in place. Satisfactory management also plays a critical role in the overall success of a property. We have put together a list of important metrics which will assist you in analyzing your hotel’s business performance and implementing suitable market plans accordingly:


Your hotel’s occupancy signifies the percentage of rooms occupied corresponding to the number of suites available in your property. The occupancy rate will help you forecast different data for the various department within your hotel. So, when there is an influx of guests resulting in high demand, you have enough employees to cater to every guest’s needs and maintain a high standard of service.

Average Daily Rate (ADR)

ADR is another key performance indicator that measures how much you are earning per room. The average daily rate is calculated by adding rates of every occupied room and then dividing the sum with the occupied flats. Keeping track of your average daily rate of rooms will help you in offering discounts during low occupancy and increase room rate during high occupancy. Hotel revenue management services help you tackle the key performance indicator and forecast occupancy and demand so that you might set room prices accordingly.

Retention Rate

The proportionate clients that come back to your hotel periodically are calculated as the retention rate. This will help you in strategizing new ways to increase retention rates through guest feedback, better services, and marketing your guest’s past interest. The retention rate can also be used to analyze their consumption during their stay in the hotel.

Online Reviews

Around 90% of customers will read online reviews before deciding to book your hotel, according to Forbes. Checking popular review websites like Trip Advisor to assess the positive and negative feedback and then improving on those will help you get good reviews and, in turn, good occupancy.

Revenue Management

Revenue management is researching customer demand and optimizing the price and availability of the product. Rooms are perishable commodities, and having the appropriate KPIs in a place like ADR and Revpar will help you predict market demands and increase revenue. Our hotel revenue management services will help owners improve their revenue potential through our in-depth analysis of your hotel’s KPI, market demand, and customer reach.

Advertising return on investment (ROI)

Calculating return on investment from marketing and promotion will help you measure your performance and implement changes accordingly. Online Advertising is a great tool to increase your visibility online, some best practices that can be followed to measure online marketing ROIs are:

  • Monitoring online presence and reviews daily.
  • Tracking the dropout rate in the booking process
  • Measuring the time session users are on the web.

Proper management of a hotel’s revenue can drastically increase the performance of a hotel. So, applying these hotel metrics, you will be able to interpret and conceive a comprehensive performance report for your hotel. With adequate revenue management in place, you will discover the determinants affecting your hotel’s performance and how you can work upon them.

All of these metrics can be improved by working with a hospitality development company.