A hotel KPI template does one job: it turns the month's room count and P&L into the same handful of ratios, calculated the same way every month, so the GM, the controller and the owner are all reading the same numbers. Most arguments in a monthly review are really arguments about definitions. This guide sets the definitions out, shows how they connect, and works through a fictional month.
The formulas
Rooms available
rooms available = rooms in inventory × days in the period. Decide once whether out-of-order rooms come out of available rooms, and apply it every month.
Occupancy
occupancy = rooms sold ÷ rooms available. Complimentary and house-use rooms are usually tracked separately; whatever you choose, keep it consistent with ADR.
ADR (average daily rate)
ADR = rooms revenue ÷ rooms sold. Use rooms revenue, not F&B or resort fees booked elsewhere.
RevPAR (revenue per available room)
RevPAR = rooms revenue ÷ rooms available, which is the same as occupancy × ADR. If the two don't match in your template, one of the inputs is wrong.
TRevPAR (total revenue per available room)
TRevPAR = total operating revenue ÷ rooms available. It captures F&B and other departments that RevPAR ignores.
GOP, GOP margin and GOPPAR
Gross operating profit is total operating revenue minus departmental expenses and undistributed operating expenses. GOP margin = GOP ÷ total operating revenue and GOPPAR = GOP ÷ rooms available. GOPPAR is the profit counterpart to RevPAR: a hotel can raise RevPAR with discounting and commissions and still see GOPPAR fall.
Cost per occupied room (CPOR)
CPOR = rooms department expenses ÷ rooms sold. Write down which expenses are included so the figure means the same thing next month.
Net ADR after commissions
net ADR = (rooms revenue − OTA commissions) ÷ rooms sold. It shows what the hotel actually keeps per room night when part of the business comes through online travel agencies.
Worked example: Sample Inn, one month (fictional)
All figures are fictional sample data. Sample Inn has 40 rooms and the month has 30 days.
| Input | How | Value |
|---|---|---|
| Rooms available | 40 × 30 | 1,200 |
| Rooms sold | input | 870 |
| Rooms revenue | input | $117,450 |
| Total operating revenue | input | $140,000 |
| Rooms department expenses | input | $26,100 |
| GOP | input | $46,200 |
| KPI | Formula | Result |
|---|---|---|
| Occupancy | 870 ÷ 1,200 | 72.5% |
| ADR | $117,450 ÷ 870 | $135.00 |
| RevPAR | $117,450 ÷ 1,200 | $97.88 |
| RevPAR check | 72.5% × $135.00 | $97.88 |
| TRevPAR | $140,000 ÷ 1,200 | $116.67 |
| GOP margin | $46,200 ÷ $140,000 | 33.0% |
| GOPPAR | $46,200 ÷ 1,200 | $38.50 |
| CPOR | $26,100 ÷ 870 | $30.00 |
Net ADR. Suppose 300 of the 870 room nights came through an OTA at a fictional 15% commission, sold at the same $135.00 ADR. Commission = 300 × $135.00 × 15% = $6,075.00. Net ADR = ($117,450 − $6,075.00) ÷ 870 = $128.02, or $6.98 less per room night than headline ADR.
To see how a change in revenue carried through to GOP against budget, use flow-through; see the flow-through calculation guide. For where these lines sit on the P&L, see the USALI-style P&L layout guide.
Mistakes that break a KPI template
- Mixing definitions: occupancy excluding comp rooms but ADR including them.
- Calculating ADR from total revenue instead of rooms revenue.
- Comparing GOPPAR across months with a different room count without noting the change.
- Averaging monthly ADRs to get a year-to-date ADR. Year-to-date ADR is year-to-date rooms revenue ÷ year-to-date rooms sold.
How the KPIs fit together
The ratios form a chain, and reading them in order explains most months. Occupancy and ADR combine into RevPAR, so a RevPAR change always comes from volume, rate or both. TRevPAR adds the other departments, which matters at a property where F&B or other operated departments carry real revenue. GOP margin and GOPPAR then show how much of that revenue the hotel kept after operating costs. Cost per occupied room and net ADR explain the gap between the top and the bottom: one shows what each occupied room costs to service, the other what each room night is worth after distribution costs.
A practical monthly review puts each KPI next to its budget and its prior-year figure, with the dollar inputs underneath, so anyone can trace a ratio back to the P&L. If a ratio moves, the first question is always whether the numerator or the denominator moved.
Setting up the template in Excel
Keep inputs (rooms, days, rooms sold, revenue and expense lines) in one block and calculate every KPI from those cells. Never type a KPI in directly. Add a check that RevPAR equals occupancy × ADR, and label every definition choice, such as whether comp rooms count as sold, on the sheet itself.