Hotel Revenue Management Glossary

Average revenue earned per occupied room per day, calculated as room revenue divided by rooms sold.

ADR = Total Room Revenue ÷ Rooms Sold

If your hotel sold 100 rooms last night for a total of $15,000, your ADR is $150. ADR ignores empty rooms - that's why it's misleading on its own and why pros pair it with occupancy and RevPAR. A rising ADR with falling occupancy almost always means you priced yourself out of the market on the shoulder nights.

The average number of nights a booked guest stays, calculated as room nights divided by reservations.

ALOS = Total Room Nights ÷ Number of Reservations

ALOS is the quiet metric that controls labor cost, turnover, and how aggressively you can stretch a peak night. A property with ALOS 1.4 burns housekeeping; one with ALOS 3.6 has fewer arrivals to manage and predictable F&B. Push ALOS upward via min-stay restrictions on compression nights instead of discounting.

The hand-picked group of competitor hotels you benchmark performance against using STR or rate-shopping data.

A good comp set is 4-6 hotels of similar quality, location, and customer profile - not just the ones across the street. STR uses your comp set to compute MPI and RGI. Refresh it annually; the moment your comp set stops reflecting your actual competition, every benchmark report becomes noise.

Total operating cost divided by rooms sold - the breakeven rate per occupied room.

CPOR = Total Operating Costs ÷ Rooms Sold

CPOR is the floor under your ADR. If your CPOR is $62 and your loss-leader rate is $59, you're paying guests to stay. Most operators don't know their true CPOR because they don't allocate variable cost (housekeeping, amenities, F&B subsidy) accurately. Get this right before you set a single rate.

How closely a forecast matched actual results, typically measured at 30/14/7-day intervals before arrival.

Accuracy = 1 − (|Forecast − Actual| ÷ Actual)

Forecast accuracy is the trust score on your demand model. Best-in-class shops hit 95%+ at 7 days out. The trick is breaking down errors by segment, day-of-week, and lead time - a 95% blended number can hide a 60% accuracy on group conversions and a 99% accuracy on transient. Fix the leak, not the average.

Profit per available room after operating expenses - the bottom-line equivalent of RevPAR.

GOPPAR = (Total Revenue − Operating Expenses) ÷ Available Rooms

RevPAR is what revenue managers chase. GOPPAR is what owners actually care about. A property can grow RevPAR while GOPPAR stays flat - rising labor and amenity costs eating the lift. Every rate decision should pass a GOPPAR sniff test, not just a RevPAR one.

Your occupancy as a share of the comp set's occupancy, indexed to 100. Above 100 = winning your fair share.

MPI = (Your Occupancy ÷ Comp Set Occupancy) × 100

MPI of 100 means you captured your fair share of demand. 110 means you outperformed; 90 means you lost share. MPI alone doesn't tell you why - you can win MPI by undercutting (low ADR) or by being preferred at parity. Always read with ARI (rate index) and RGI (yield index).

The percentage of available rooms that are sold on a given night.

Occupancy = (Rooms Sold ÷ Rooms Available) × 100

Occupancy is the most intuitive KPI but the most easily misread. 100% occupancy at $89 ADR is a worse outcome than 78% occupancy at $189. Pair it with ADR to see RevPAR - the only number that captures both at once. Also: track by day-of-week and segment, never as a monthly blended average.

Room revenue divided by total available rooms - the headline KPI capturing both rate and occupancy in one number.

RevPAR = ADR × Occupancy = Total Room Revenue ÷ Available Rooms

RevPAR is the single most-watched number in hotel revenue management. It rolls ADR and occupancy into one comparable metric, making it perfect for benchmarking against the comp set, prior year, and budget. The catch: RevPAR ignores cost. Two hotels with identical RevPAR can have radically different GOPPAR.

Your RevPAR as a share of the comp set's RevPAR, indexed to 100. The yield equivalent of MPI.

RGI = (Your RevPAR ÷ Comp Set RevPAR) × 100

RGI is the headline benchmark on your STR report. 100 means you captured your fair share of revenue; above means winning, below means losing. Track all three together - MPI (occupancy share), ARI (rate share), RGI (revenue share) - to know whether to push rate, push occupancy, or both.

Total revenue (rooms + F&B + ancillary) divided by available rooms - RevPAR's full-property cousin.

TRevPAR = Total Revenue ÷ Available Rooms

TRevPAR captures the whole guest spend, not just the room. For resorts, full-service hotels, and properties with strong F&B or ancillary revenue, TRevPAR tells a truer story than RevPAR alone. A hotel that wins RevPAR while losing TRevPAR is selling rooms at the expense of total spend.