Hotel KPIs
Hotel KPIs (key performance indicators) are the figures a hotel tracks, each with its own formula, to measure how it performs. The core three are occupancy, the percentage of available rooms sold in a period, average daily rate (ADR), the average revenue earned per sold room, and revenue per available room (RevPAR), the headline metric in hotel benchmark reports (Understanding Hotel STAR Reports: A Complete Guide (EHL Insights)) (Marriott International, Form 10-K FY2020).
Last updated: November 2026
How hotel KPIs work
Most hotel KPIs divide one figure by another over a set period. In its FY2020 annual report, Marriott calculates occupancy as occupied rooms divided by total rooms available, ADR as property room revenue divided by total rooms sold, and RevPAR as room sales for comparable properties divided by room nights available (Marriott International, Form 10-K FY2020).
The three are linked. Host Hotels & Resorts, a US lodging REIT, treats RevPAR as the product of the average daily room rate charged and the average daily occupancy achieved (Host Hotels & Resorts, Form 10-K FY2025). The divisor for RevPAR counts every available room, whether it sold or not, so unsold rooms lower the figure (The Top 10 Key Hotel KPI Formulas (Hotel Online)).
Other KPIs measure profit and guest stays. GOPPAR is gross operating profit per available room, where gross operating profit is total revenue less departmental and undistributed operating expenses (PAM: The Most Useful Benchmark for Hotel Investment (HVS)). Average length of stay is total occupied room nights divided by the number of bookings (The 10 most important hotel KPIs (Mews blog)).
The base the numbers are measured on matters too. Marriott reports on comparable properties: hotels open and operating under one of its brands since the start of the last full calendar year, leaving out any that had significant room or public space renovations, moved between managed and franchised, or suffered substantial damage (Marriott International, Form 10-K FY2020).
Why hotel KPIs matter for hotel distribution
In 2025, US hotel occupancy was 62.3%, down 1.2% from 2024, and annual occupancy and RevPAR fell for the first time since 2020 (U.S. hotels report first full-year occupancy, RevPAR declines since 2020 (CoStar / STR)). ADR rose 0.9% to US$160.54 over the same year, while RevPAR slipped 0.3% to US$100.02 (U.S. hotels report first full-year occupancy, RevPAR declines since 2020 (CoStar / STR)). Higher rates did not make up for fewer rooms sold, and RevPAR ended the year lower.
A room held back from a channel that would have sold it lowers occupancy for that night. A rate loaded too low on one channel lowers ADR for every booking it takes. Both changes reach RevPAR, which is why rate and availability accuracy shows up in the KPIs a hotel reports to its owners.
RevPAR also has limits as a picture of the whole business. It does not include food and beverage, parking or other guest service revenue (Host Hotels & Resorts, Form 10-K FY2025). At hotels with large food and beverage or conference operations, rooms revenue may be only about half of total revenue, and a higher RevPAR does not always mean healthier financial performance (PAM: The Most Useful Benchmark for Hotel Investment (HVS)).
Hotel KPIs compared with single metrics, profit KPIs, indexes and rental KPIs
| Compared with | What is different |
|---|---|
| A single metric (RevPAR, ADR, occupancy) | Hotel KPIs are the whole set. A single metric answers one question, and each has its own page: RevPAR, ADR, occupancy rate. |
| Revenue KPIs vs profit KPIs (RevPAR and TRevPAR vs GOPPAR) | Total RevPAR divides rooms, food and beverage and other ancillary revenue by room nights available (Host Hotels & Resorts, Form 10-K FY2025). GOPPAR measures profit rather than revenue. |
| Internal KPIs vs comp set indexes (MPI, ARI, RGI) | Each index divides the hotel's figure (occupancy for MPI, ADR for ARI, RevPAR for RGI) by the comp set average and multiplies by 100 (Understanding Hotel STAR Reports: A Complete Guide (EHL Insights)). More on the RevPAR index. |
| Short-term rental KPIs (AirDNA) | Same names, different inputs. AirDNA calculates rental ADR as total revenue divided by booked nights, and its RevPAR stands for revenue per available rental, not per room (How does AirDNA calculate average daily rate (ADR)? (AirDNA Help Center)). How rental fees are treated is on the ADR page. |
Frequently asked questions
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Jetstream builds an AI channel manager that connects a property's systems to the channels where guests book and keeps rooms, rates and availability accurate on each one, managed from one place.