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Hospitality Industry Key Metrics
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Average Daily Rate (ADR)
A measure of the average rate paid for rooms sold, calculated by dividing room revenue by the number of rooms sold.
Revenue Per Available Room (RevPAR)
A performance metric in the hotel industry, calculated by multiplying a hotel's average daily room rate by its occupancy rate.
Occupancy Rate
The ratio of rented or used space compared to the total amount of available space, expressed as a percentage.
Total Available Rooms
The total number of rooms available for sale in a given time period.
Guest Satisfaction Score
A metric that measures how satisfied customers are with a hotel's service, often obtained through surveys.
Cost Per Occupied Room (CPOR)
A measure of the average cost to the hotel of renting out a room, calculated by dividing total rooms costs by the total number of rooms occupied.
Average Length of Stay (ALOS)
The average number of nights spent per guest, calculated by dividing the total number of occupied room nights by the number of bookings.
Revenue Generated Index (RGI)
A measurement of a property's fair market share of revenue compared to a competitive set.
Market Penetration Index (MPI)
A metric used to gauge a hotel's share of the market's occupancy compared to its competitive set.
Average Rate Index (ARI)
A performance measure that compares a hotel's ADR with that of its competitive set.
Employee Satisfaction Index
A metric reflecting how satisfied employees are with their workplace, often measured with surveys and questionnaires.
Food Cost Percentage
The cost of food sold in a restaurant divided by the revenue generated from food sales, expressed as a percentage.
Beverage Cost Percentage
The ratio of the cost of beverages sold to the revenue generated from beverage sales, expressed as a percentage.
Profit Margin
The percentage of revenue that becomes profit after all expenses are paid, calculated by dividing net profit by revenue.
Return on Investment (ROI)
A measure of the profitability of an investment, calculated by dividing the net profit by the cost of the investment.
Labor Cost Percentage
The ratio of labor costs to total sales, highlighting the cost of workforce relative to the revenue generated.
Gross Operating Profit Per Available Room (GOPPAR)
A profitability metric that provides insight into the gross operating profit made from each available room, regardless of whether it is sold.
Net Promoter Score (NPS)
A customer loyalty metric that assesses the likelihood of customers recommending the business, based on a scale of -100 to 100.
Turnover Rate
The rate at which employees leave a company and are replaced, indicative of workplace environment and stability.
Maintenance Cost Percentage
The percentage of overall operating budget that is spent on maintaining the property, including repairs and upkeep.
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