ANSWERS · REVENUE & DISTRIBUTION
Which hotel metrics matter most, and to whom?
5 hotel leaders answerMoustafa Ahmed, Isaac J. Collazo, Maxime des Monstiers, Scot Turner and Tim BoersmaPublished The hotel metrics that matter most depend on who reads them. For the hotel team, Moustafa Ahmed names three: occupancy, ADR and RevPAR. Isaac J. Collazo of STR says RevPAR is still the first thing people ask about, warns against looking at one number alone, and notes that owners are all about GOP. On the owner side, Maxime des Monstiers puts EBITDA first and RevPAR second. Scot Turner sees TRevPAR becoming the new benchmark, and Tim Boersma says to know your property before you pick a metric.
This answer is part of our guide to hotel revenue management.
In their own words
- MA
Moustafa Ahmed
Cluster Reservations Manager, Banyan Tree Dubai“In hotel industry ... the main three, actually, key identifier for the successful hotel is occupancy and the ADR, average daily rates, and as well the RevPAR, the revenue per available room. That's actually the three main factor to measure your success of a hotel.”
Listen from 19:03Reservations is your sales engine Isaac J. Collazo
Vice President, Analytics, STR (Smith Travel Research)“I think people can become very myopic in just looking at one number. And I'm not sure one number is great because that may be what your performance clause is.”
Listen from 27:29Smith Travel Research: Unlocking Hotel Data Power Maxime des Monstiers
Head of Operations & Asset Management, Capital Hospitality Europe“What are the KPIs? ... level of EBITDA that, Pierre Louis was mentioning. ... second one would be, the level of, revenue per available room ... And we did overperform quite a few five stars on the destination of this.”
Listen from 31:46Fewer rooms, more value: repositioning La Pérouse in Nice Scot Turner
Managing Director, Arden Hospitality“TrevPar has become the new metric that everyone's being benchmarked against. So now all of a sudden, it's not on that RevPAR. It's on the TrevPar.”
Listen from 06:39From hotelier to restaurateur: redefining F&B - TB
Tim Boersma
Revenue Manager, Room Price Genie“How big is the influence of my ADR in terms of my total revenue? ... how big of an influence has my occupancy on total revenue?”
Listen from 27:32The Pricing Mindset Shift Holding Hotels Back
Calculate it yourself
Related questions
- Why is US hotel ADR growing below the rate of inflation?Isaac J. Collazo answers at 24:59
- How do independent hotels without a revenue manager set their prices?Tim Boersma answers at 07:57
- Why should a five-star hotel not sell at half its rate?Moustafa Ahmed answers at 23:04
- Why reduce a hotel's room count before selling it?Maxime des Monstiers answers at 20:04
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Banyan Tree Dubai · STR (Smith Travel Research) · Capital Hospitality Europe · Arden Hospitality · Room Price Genie · All answers
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