Revenue management
Average Daily Rate (ADR)
ADR measures average room revenue for each room sold. It is useful for understanding achieved room pricing.
ADR = Room Revenue ÷ Rooms Sold
Calculate ADR →Hotel KPI guide
Hotel Metrics & Calculators
A practical guide to the hotel KPIs used by revenue, marketing, and distribution teams—with free calculators for each metric.
Core hotel performance metrics
No single KPI tells the whole story. Rate and occupancy explain rooms performance, while acquisition and distribution metrics help explain how efficiently revenue is generated.
Revenue management
Revenue Per Available Room (RevPAR)
RevPAR combines rate and occupancy to show room revenue generated across all available inventory.
RevPAR = ADR × Occupancy Rate
Calculate RevPAR →Hotel marketing
Return on Ad Spend (ROAS)
ROAS measures attributed booking revenue generated for each dollar spent on advertising.
ROAS = Attributed Booking Revenue ÷ Ad Spend
Calculate Hotel ROAS →Distribution
OTA Commission
OTA commission is a distribution cost generally calculated as a percentage of eligible booking revenue.
Commission Cost = OTA Revenue × Commission Rate
Calculate OTA Commission →Direct booking
Direct Booking ROI
Direct-booking analysis compares advertising and direct distribution costs with the booking revenue attributed to those efforts.
ROAS = Direct Booking Revenue ÷ Advertising Spend
Calculate Direct Booking ROI →Hotel metrics FAQ
What are the most important hotel KPIs?
ADR, occupancy, and RevPAR are foundational rooms KPIs. Marketing and distribution teams may also track ROAS, cost per booking, channel commission, conversion rate, and direct-booking contribution.
What is the difference between ADR and RevPAR?
ADR measures revenue per room sold. RevPAR measures room revenue across every available room, so it reflects both pricing and occupancy.
Should hotels focus on ROAS or cost per booking?
Both can be useful. ROAS accounts for attributed booking value, while cost per booking shows acquisition cost per reservation. Looking at them together provides more context.
Are OTA commissions always bad?
No. OTAs can provide valuable distribution and incremental demand. Commission is a channel cost that should be evaluated alongside the demand and revenue the channel produces.