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

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


It is a  KPI 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  and apply revenue management.

How do you calculate Occupancy?

Formula: Occupancy = Rooms Sold / Room Available

ADR stands for: Average Daily Rate.
It is a KPI 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 hotels 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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