5 financial figures that hoteliers should keep an eye on

As a host, you juggle many tasks every day: looking after guests, coordinating employees, keeping processes under control. There is often little time left for finances. A few key figures can be enough to keep track of things and make decisions more reliably.

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Regardless of the size of the house, these key figures can help you keep track of things and they can be easily used with just a few calculation steps.

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Here are five key figures that can help you manage your hotel in a targeted manner.

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1. ADR - Average Daily Rate (average rate per room sold)

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The ADR shows how much revenue you generate per occupied room on average.

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Formula:
ADR = room turnover ÷ number of occupied rooms

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example:

• 15 rooms occupied
  
• Total room turnover: 1.500€
  
• ADR = 1,500€ ÷ 15 = 100€
  
  

Everyday use:
With the ADR, you can see the average price per room. This allows you to measure whether your pricing strategy (such as discount campaigns or packages) is successful.

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2. RevPAR - Revenue per Available Room

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RevPAR combines workload and price. It shows how much revenue is generated per room — regardless of whether it is occupied or not.

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Formula:
RevPAR = room turnover ÷ total number of rooms
or: RevPAR = ADR × occupancy rate

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example:

• Your hotel has 20 rooms.
  
• 15 rooms occupied, ADR = 100€
  
• Room turnover = 1.500€
  
• RevPAR = €1,500 ÷ 20 = 75€
  
  

Everyday use:
RevPAR combines price levels and occupancy. It is more meaningful than pure occupancy and shows you whether your house is filled in an economically sensible way.

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3. GOP - Gross Operating Profit (Gross Operating Profit)

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The GOP shows how much of revenue remains after deducting all ongoing operating expenses — before taxes, interest, and depreciation are taken into account.

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Formula:

GOP = total revenue — operating costs

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example:

• Turnover per month: 50,000€
  
• Costs (personnel, energy, use of goods, etc.): 35,000€
  
• GOP = 15,000€

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Everyday use:‍

The GOP shows how efficiently your company is doing business. Increasing sales is useless if costs run away at the same time.

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4. RevPor - Revenue per Occupied Room (total revenue per occupied room)

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RevPor goes beyond the room rate and shows how much a guest spends on average throughout the house — including F&B, parking, spa or other additional services.

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Formula:
RevPor = total revenue ÷ number of occupied rooms

This means: You take all sales (rooms + additional income) and divide them by the number of rooms sold.

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Example (practical):

• Your hotel is selling 20 rooms
  
• Room rate: 100€ → room turnover = 2,000€
  
• Additional income (restaurant, bar, parking, etc.): 600€
  
• Total revenue = 2,600€
  
• RevPor = €2,600 ÷ 20 = 130€
  
  

Everyday use:
RevPor shows you how much revenue an occupied room actually brings in — including additional income. This shows how much additional offers (F&B, spa, parking) actually account for the overall result.

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5. Occupancy rate (occupancy %)

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Die occupancy rate shows what percentage of your available rooms were actually sold.

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Formula:
Occupancy% = occupied rooms ÷ available rooms × 100

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example:

• Your hotel has 20 rooms
  
• 15 rooms are occupied in one day
  
• Occupancy = 15 ÷ 20 × 100 = 75%
  
  

Everyday use:
The occupancy rate is the basis for many other key figures. It shows you how busy your house is and whether your marketing or sales measures are having the desired effect.

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Why these metrics are important

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With these five key figures — ADR, RevPAR, GOP, RevPor and occupancy — you have a clear picture of your hotel's economic situation. They help you evaluate pricing strategies, identify additional sales, keep costs under control and better assess developments.

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Of course, there are many other relevant key figures, which play a role depending on the size, orientation and strategy of a hotel — from cash flow to guest satisfaction to personnel cost ratios. However, anyone who starts with these five already has a solid basis for making well-founded decisions. We will present further helpful key figures in the next part.

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Anyone who wants to keep an eye on their overall hotel finances benefits from digital solutions such as Profitize. The platform combines data from various systems — such as PMS, POS, banking, accounting, energy suppliers or HR — in one interface. Instead of collecting numbers manually and evaluating them in Excel, they are automatically analyzed. On this basis, profitize creates forecasts, supports budget planning and highlights trends at an early stage.

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In this way, hoteliers not only keep track of costs and income, but also recognize opportunities to increase profitability and at the same time gain time that they can invest in what matters most: their guests.

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