What are the most important Management Formulas in the and how to calculate them?

Here you will find the top 5 Key Performance Indicators (KPI):

It is a Hotel  calculation that shows the percentage of available rooms or beds being sold for a certain period of time.
It is important for to keep track of this data on a daily basis to identify the average daily rate, forecast and apply management.

How do you calculate Occupancy?

Formula: Occupancy = Rooms Sold / Room Available


ADR stands for: Average Daily Rate.
It is a  to calculate the average price or rate for each hotel room sold for a specific day.

It is one of the most common financial indicators to measure how successful the performance of the hotel is against other that have similar characteristics such as size, clientele and location and/or its own previous figures.

How do you calculate ADR?

ADR = Room Revenue / Rooms Sold


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