Understanding The Hotel KPIs That Drive Profit, Efficiency, and Guest Experience

Hotel industry leaders rely on clear, accurate data to guide decisions that shape profitability and guest satisfaction.

Understanding and tracking key performance indicators (KPIs) helps hotel operators measure success, forecast effectively, and make confident decisions that drive performance.

Whether you are new to hospitality or a seasoned professional, it’s easy to get lost in the sea of hotel terms, acronyms, and performance metrics.

This glossary defines the most essential hotel KPIs used across finance, operations, and guest service, empowering you to benchmark, forecast, and act with precision.

Core Hotel Performance Metrics (A–Z)

ADR (Average Daily Rate)

Average room revenue earned per sold room. ADR shows how effectively a property prices its rooms and adjusts rates to demand.

ARI (Average Rate Index)

Compares a hotel’s ADR to its competitive set. Used alongside the Market Penetration Index (MPI) to assess pricing strength and positioning.

AVLOS (Average Length of Stay)

Tracks how long guests stay on average. Longer stays often improve efficiency and reduce housekeeping costs.

BAR (Best Available Rate)

BAR is the lowest unrestricted rate a hotel offers to the public for a specific room type on a specific night.

Brand QA (Quality Assurance)

Evaluates a property’s adherence to brand standards and operational consistency. Strong QA scores support guest satisfaction and brand integrity.

Comp Set

The competitive set of the hotel. This is a group of hotels that the hotel benchmarks against. These could be properties that are very local to the property, or properties with a similar offering in a wider area.

COGS (Cost of Goods Sold)

Represents the direct cost of goods and services, including food, beverage, and supplies. A core measure of profitability in F&B operations.

CPOR (Cost per Occupied Room)

Calculates the cost of servicing each occupied room. Lower CPOR contributes directly to higher operating margins.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

A key measure of operating profitability, used by owners and investors to compare financial performance across hotels.

Employee Turnover Rate

Tracks the percentage of staff who leave over a set period. Reducing turnover improves service consistency and reduces hiring costs.

Energy Cost per Occupied Room

Measures utility costs relative to occupancy. Managing this KPI supports both sustainability goals and cost efficiency.

F&B Cost Percentage

Total food and beverage costs divided by F&B revenue. This ratio reveals margin health in restaurant and banquet operations.

Flow-Through Percentage

Shows how much incremental revenue converts into profit. High flow-through indicates strong expense control and operational discipline.

GOPPAR (Gross Operating Profit per Available Room)

Gross operating profit divided by available rooms. A critical profitability metric that reveals how efficiently revenue is converted into profit.

GSS (Guest Satisfaction Score)

Aggregates survey, review, and feedback data into one measure of guest experience quality. A strong GSS correlates with repeat stays and higher RevPAR.

MPR (Minutes per Room)

Average time required to clean or service a room. Lower MPR means better labor productivity and cost efficiency.

MPI (Market Penetration Index)

Compares a hotel’s occupancy to its comp set. An MPI above 100 means stronger market share and demand capture.

Net ADR Yield

Net room revenue after commissions and discounts, divided by gross ADR. It measures distribution efficiency and OTA impact on profitability.

NOI (Net Operating Income)

Total revenue minus operating expenses, before taxes and financing. NOI reflects a property’s true operating performance.

OCC (Occupancy)

Percentage of available rooms sold during a specific period. A fundamental indicator of demand strength and revenue opportunity.

OTB (On the Books)

Represents confirmed future bookings and group reservations. Used to forecast occupancy, revenue, and labor needs.

RevPAR (Revenue per Available Room)

Calculated as ADR divided by occupancy. One of the most important hotel revenue KPIs, reflecting how effectively a property fills rooms at profitable rates.

RevPAR Index

Compares a property’s RevPAR to competitors. A score above 100 indicates market outperformance. Often also called RGI (Revenue Generation Index).

TEN/DEF

Distinguishes between tentative and definite room bookings for a group.

TRevPAR (Total Revenue per Available Room)

Measures total property revenue (rooms, F&B, spa, parking, etc.) per available room. This KPI gives a complete picture of property profitability.

Turning Data into Profit and Performance

Hotel data creates impact only when it drives action. By connecting KPIs across revenue, labor, and guest experience, hotel leaders can identify opportunities, allocate resources efficiently, and strengthen profitability.

With Actabl’s hotel intelligence platform, US hotel operators can bring together insights from every department to:

• Forecast more accurately
• Optimize labor and scheduling
• Enhance guest experience
• Maintain asset value

When every KPI connects to a clear goal, data turns from information into impact, driving smarter, more profitable decisions across the portfolio.

• Book your Actabl demo today to discover more about how our platform could boost your hotel business performance.