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Hospitality Industry Key Metrics

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Average Daily Rate (ADR)

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A measure of the average rate paid for rooms sold, calculated by dividing room revenue by the number of rooms sold.

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Revenue Per Available Room (RevPAR)

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A performance metric in the hotel industry, calculated by multiplying a hotel's average daily room rate by its occupancy rate.

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Occupancy Rate

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The ratio of rented or used space compared to the total amount of available space, expressed as a percentage.

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Total Available Rooms

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The total number of rooms available for sale in a given time period.

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Guest Satisfaction Score

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A metric that measures how satisfied customers are with a hotel's service, often obtained through surveys.

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Cost Per Occupied Room (CPOR)

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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.

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Average Length of Stay (ALOS)

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The average number of nights spent per guest, calculated by dividing the total number of occupied room nights by the number of bookings.

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Revenue Generated Index (RGI)

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A measurement of a property's fair market share of revenue compared to a competitive set.

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Market Penetration Index (MPI)

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A metric used to gauge a hotel's share of the market's occupancy compared to its competitive set.

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Average Rate Index (ARI)

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A performance measure that compares a hotel's ADR with that of its competitive set.

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Employee Satisfaction Index

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A metric reflecting how satisfied employees are with their workplace, often measured with surveys and questionnaires.

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Food Cost Percentage

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The cost of food sold in a restaurant divided by the revenue generated from food sales, expressed as a percentage.

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Beverage Cost Percentage

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The ratio of the cost of beverages sold to the revenue generated from beverage sales, expressed as a percentage.

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Profit Margin

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The percentage of revenue that becomes profit after all expenses are paid, calculated by dividing net profit by revenue.

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Return on Investment (ROI)

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A measure of the profitability of an investment, calculated by dividing the net profit by the cost of the investment.

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Labor Cost Percentage

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The ratio of labor costs to total sales, highlighting the cost of workforce relative to the revenue generated.

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Gross Operating Profit Per Available Room (GOPPAR)

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A profitability metric that provides insight into the gross operating profit made from each available room, regardless of whether it is sold.

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Net Promoter Score (NPS)

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A customer loyalty metric that assesses the likelihood of customers recommending the business, based on a scale of -100 to 100.

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Turnover Rate

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The rate at which employees leave a company and are replaced, indicative of workplace environment and stability.

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Maintenance Cost Percentage

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The percentage of overall operating budget that is spent on maintaining the property, including repairs and upkeep.

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