Hospitality Industry Glossary
Master the key performance indicators (KPIs), operational metrics, and revenue formulas required to run a highly profitable hotel business.
Average Daily Rate (ADR) measures the average revenue earned per occupied room on a given day.
CPOR measures the average operational cost incurred to clean, maintain, and service a single occupied guestroom.
GOPPAR measures gross operating profit relative to the total number of available rooms, reflecting both revenue generation and operational efficiency.
A channel manager is a software system that synchronizes a hotel's live room inventory, rates, and booking policies across multiple online distribution channels (OTAs) in real time.
NRevPAR is a revenue metric that subtracts distribution costs, transaction fees, and OTA commissions from room revenue before dividing by total available rooms.
Rate Parity is a legal agreement or pricing strategy where a hotel maintains consistent rates for the same room type across all distribution channels (its own website and all OTAs).
Revenue Per Available Room (RevPAR) is a performance metric calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period.