Standard for measuring the maximum input and output of hotel rooms

How to measure the operating performance of a hotel? The commonly used standard of domestic hotel industry is to look at the room occupancy rate of this hotel. In the hotel industry in Europe and America, hoteliers, hotel investors and hotel investment analysts are generally accustomed to using the concept of RevPar (revenue per available room) as the basis for measuring and analyzing their hotel performance. RevPar is a widely used measure in the international hotel industry, which reflects the room income generated by each room, so it can measure the success of hotel room inventory management. Undeniably, the goal of hotel managers is to maximize RevPar through the improvement of room occupancy rate and average house price, because room income does account for a large proportion of total hotel operating income. Generally speaking, 50%-65% of the total revenue of a three-star hotel providing full-service comes from rooms. In budget hotels or long-stay hotels with limited ancillary services (mainly catering services), up to 90% of the income comes from rooms.

Compared with RevPar, it is unscientific for China's hotel industry to measure hotel performance based on room occupancy rate. Especially those hotels that compete at low prices in pursuit of high occupancy rate, the room occupancy rate can't explain the problem at all. Although RevPar is recognized by the international hotel industry as the most commonly used indicator of business performance, and it can provide general market trends and some income indicators, there are also some obvious shortcomings when analyzing the business performance of a hotel based on RevPar. Therefore, some international experts have also put forward a performance measurement concept that can make up for the deficiency of RevPar, namely: GopPar.

RevPar is calculated by dividing the hotel's net room income (that is, income after deducting discounts, sales tax and other items) by the total number of rooms available for rent, or multiplying the average daily room rate (ADR) of the hotel by the room occupancy rate.

The specific formula is as follows:

Total room revenue ÷ total number of rooms ÷ days per year =RevPar