Profitroom has published a guide arguing that hotel performance metrics only reveal lost revenue when read together, by channel and after costs.
The core metrics
Using definitions from the CoStar STR Benchmark glossary, the guide lists five standard measures: occupancy (rooms sold divided by rooms available), ADR (room revenue divided by rooms sold), RevPAR (room revenue divided by rooms available), TRevPAR (total operating revenue per available room) and GOPPAR (gross operating profit per available room).
Why RevPAR is not enough
RevPAR ignores what each booking cost to win. Profitroom's example: a 40-room hotel with 1,200 available nights sells 900 nights at €150 in one month and 800 at €168.75 in another. Both months earn €135,000 and a RevPAR of €112.50. Applying an illustrative 18% OTA commission, the first month, with 60% of revenue from OTAs, pays €14,580, while the second, at 35%, pays €8,505, keeping €6,075 more. Hence many revenue managers also track net RevPAR after distribution costs.
Reports that lead to decisions
- Channel performance: which channel delivers the highest ADR after commission, and should allocation shift?
- Pickup and booking window: are future dates filling faster than last year, and should rates change or a promotion open early?
- Booking engine conversion: where do guests abandon, and can that step be simplified?
Hotels should also track direct booking share; HOTREC reports 51.3% of European bookings were direct in 2025. Profitroom's Channel Manager reports revenue, ADR and room nights by channel.
Common mistakes
- Comparing only with last year, without a competitive set.
- Relying on property-wide averages that hide weak days or segments.
- Changing several prices at once, so no one knows what worked.
For smaller hotels
The guide says small properties can track these numbers from PMS, channel manager and booking engine reports, with revenue management support becoming worthwhile as decisions outgrow manual analysis.
Originally published by Profitroom: Profitroom Guide: Reading Hotel Performance Metrics to Find Lost Revenue
