Discover the numbers that actually keep your hotel afloat.
You’ll learn which hotel KPIs drive revenue and how to monitor them without stress.

Subscribe to the Hotelier Helpcast and ring the bell so you never miss an episode. You’re juggling rooms, guests, staff, suppliers—and now someone’s telling you to track KPIs? Brilliant. Just what you needed.

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But here’s the thing: the right hotel KPIs (Key Performance Indicators) don’t add stress. They save your sanity. In this beginner’s guide, I’ll show you which numbers actually matter and how to use them without getting a math degree.

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This is especially for independent hotel owners who want to run smarter, not harder. Let’s turn your numbers into tools—not torture.

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Occupancy Rate: The Bed-Filler’s Best Friend

Let’s start simple. Occupancy Rate tells you how many of your rooms were filled, and it’s calculated like this:

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Occupied Rooms ÷ Total Available Rooms × 100

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If you’ve got 30 rooms and 21 were booked, that’s a 70% occupancy rate. Easy maths, right?

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Why it matters: A low rate? Time to look at your marketing or pricing. A high one? Great—unless it’s paired with low revenue (we’ll get to that).

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Quick tip: Track it daily, weekly, and monthly. You’ll start seeing patterns, like when bookings dip or surge. Adjust promos and staffing accordingly.

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ADR (Average Daily Rate): Know What You’re Charging

Now let’s see how much guests are actually paying you per room. The formula:

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Total Room Revenue ÷ Rooms Sold = ADR

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Say you made $3,000 from 20 rooms. That’s a $150 ADR.

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Why it matters: This tells you if your pricing strategy is working. If your occupancy is high but your ADR is low, you might be filling beds too cheaply.

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Pro move: Keep tabs on your competitors. Are you the cheapest in town? The most expensive? Either can be a problem if the guest experience doesn’t match.

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RevPAR: The “I’m a Real Hotelier Now” Metric

Revenue Per Available Room (RevPAR) combines your Occupancy Rate and ADR.

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ADR × Occupancy Rate = RevPAR

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Or simply:

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Total Room Revenue ÷ Total Available Rooms

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It’s the ultimate performance snapshot. If your RevPAR is rising, you’re making better money per room—regardless of whether it’s due to higher rates, better marketing, or both.

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Imagine: Your ADR is $120 and your occupancy is 80%. Your RevPAR is $96. That means every room, whether filled or not, is earning you $96 on average.

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GOPPAR: Gross Operating Profit Per Room

This one’s not for the faint of heart—but it’s worth a peek. GOPPAR measures profit after expenses.

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Gross Operating Profit ÷ Available Rooms = GOPPAR

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Why it matters: High occupancy and ADR are lovely, but if your laundry bill is eating your profits, you’ll never grow. GOPPAR tells you if you’re really making money.

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Tracking expenses isn’t sexy. But knowing your actual profit per room? That’s where the grown-up business decisions start.

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RevPAC: Total Revenue Per Guest

Sometimes, the guest spends more on wine than the room. That’s where RevPAC comes in:

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Total Guest Spend ÷ Total Number of Guests

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This includes everything—spa, food, parking. It’s great for seeing how well your upsells and extras are working.

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Pro tip: If your RevPAC is low, you’ve got upsell opportunities. Train staff to offer wine pairings. Add an in-room massage. You’d be surprised how many people say yes if you just ask.

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Staff-to-Room Ratio: Service vs. Sanity

Too many staff and you’re bleeding cash. Too few and the guests leave bad reviews. The sweet spot depends on your type of property, but start tracking it:

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Total Number of Staff ÷ Total Rooms

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Use it to monitor productivity and plan staffing levels, especially during high or low seasons.

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Which KPIs Should You Track Right Now?

If you’re new to all this, don’t try to track ten things at once. Start here:

• Occupancy Rate

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• ADR

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• RevPAR

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Once those feel like second nature, level up to:

• GOPPAR

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• RevPAC

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• Staff-to-Room Ratio

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Don’t worry about daily tracking for everything. Weekly or monthly is often enough—unless you’re in high season, in which case, keep your eyes wide open.

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You’re not just managing rooms.

You’re building a business that lasts.

One with stories, not just spreadsheets.

“Your Independent Hotel Blueprint” helps you do just that.

Download it. It’s time.

You can find a link in the show notes.

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Do you currently track any hotel KPIs—or is it all gut feeling and guesswork?

Let me know in the comments!

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Here Are Your 5 Takeaways

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In Conclusion

Running a hotel isn’t just about making beds and charming guests. It’s about knowing your numbers so you can actually grow. Start with the basics. Set a reminder to review them weekly. And over time, you’ll start seeing patterns you can act on.

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No more flying blind. No more guesswork. Just smart, sustainable decisions that keep your hotel thriving—even in the off-season.

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Want to learn how to apply these numbers to your unique property? Join me in “The Hotel Owner’s Roadmap: 90 Days to More Bookings, More Time, and Less Stress” course. We’ll go deep into using KPIs to build a business that works for you.

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