RevPAR is the most important metric in hotel revenue management. In this video we look at a specific example, see how to calculate it and look at the reasons why it's so important. Please visit my updated site at hotelrevenuema....
Thanks so much for reaching out. A trend I see with college students who reach out to me is that teachers have them do a bunch of work that has little-to-no real world value. I have a college degree, but not in hospitality. I just learned all these things on my own and have clients that pay me to help their hotel make money. I have never heard of a 10-K report and none of my clients have ever used one. I have both independent and branded clients. Sorry I couldn't be of more help.
What if some of my rooms are larger (2bedroom/2 bathroom) than others (studio with 2 beds and 1 bathroom)? Do I just consider a room a room? Or do I need to take into account the sizes/number of Occupants (some rooms only can have 2 and some can have up to 6) that can go in each room? The price difference in some of these rooms is a difference of $150 ($159/night and another room for $309/night). Thank you!
Jamie, for a hotel when considering RevPAR a room is a room. It's real big picture. In the real world though it's good to consider larger rooms for their added value. With Valentine's Day approaching I encourage my clients to drastically raise the rates on their very few Jacuzzi rooms.
If the ADR is $155 that doesn't means half rooms are for 145 and the other half is 165. I mean theoretically this is correct but in real life you might sell one room for a walk in as $200 and three other rooms for $150 each. Is the average 175 ? No
