36.16 Hospitality
Hotel interviews ask occupancy, ADR (average daily rate), and RevPAR (revenue per available room). Restaurant covers can be busy while rooms are empty. These lodges are fictional names for class, not a hotel chain's filing.
| KPI | What the number means | Who uses it | Action it drives |
|---|---|---|---|
| Occupancy | Room-nights sold divided by room-nights available. | Front office manager | Low occupancy is a rate or a channel problem. Covers do not fill rooms. |
| ADR | Room revenue divided by room-nights sold. | Revenue manager | A falling ADR with full rooms may be discounting. Say so. |
| RevPAR | Room revenue divided by room-nights available. Occupancy times ADR. | General manager | This is the one number that stops a discount war. |
Fictional sample rows. One month. Available room-nights are rooms × nights, already multiplied.
| Property | City | Available | Sold | Room revenue | Covers |
|---|---|---|---|---|---|
| Shivaji Nagar lodge | Pune | 600 | 420 | ₹8,40,000 | 900 |
| Kothrud lodge | Pune | 300 | 150 | ₹4,50,000 | 800 |
| Nashik Road lodge | Nashik | 300 | 240 | ₹3,60,000 | 400 |
| Gangapur lodge | Nashik | 200 | 160 | ₹2,40,000 | 350 |
| Kolhapur lodge | Kolhapur | 400 | 200 | ₹5,00,000 | 700 |
| Nagpur lodge | Nagpur | 500 | 250 | ₹3,75,000 | 650 |
Worked from those rows.
- Available 2,300. Sold 1,420. Room revenue ₹27,65,000. Covers 3,800.
- Occupancy is 1,420 ÷ 2,300 = 61.7%.
- ADR is 27,65,000 ÷ 1,420 = ₹1,947 (nearest rupee).
- RevPAR is 27,65,000 ÷ 2,300 = ₹1,202 (nearest rupee). RevPAR is also occupancy times ADR. Use the unrounded figures (1,420 ÷ 2,300, and 27,65,000 ÷ 1,420) if you multiply; rounding each factor first can move the rupee.
Pune (both lodges): available 900, sold 570, revenue ₹12,90,000. Occupancy 570 ÷ 900 = 63.3%. ADR 12,90,000 ÷ 570 = ₹2,263. RevPAR 12,90,000 ÷ 900 = ₹1,433. Nashik (both): available 500, sold 400, revenue ₹6,00,000. Occupancy 400 ÷ 500 = 80.0%. ADR 6,00,000 ÷ 400 = ₹1,500. RevPAR 6,00,000 ÷ 500 = ₹1,200.
Kothrud alone: occupancy 150 ÷ 300 = 50.0%, ADR 4,50,000 ÷ 150 = ₹3,000, RevPAR 4,50,000 ÷ 300 = ₹1,500, covers 800.
| Good KPI | Vanity metric | |
|---|---|---|
| From the same rows | Kothrud occupancy 50.0% and RevPAR ₹1,500 | Kothrud 800 covers |
| Why | Half the rooms were empty. The rate on the rooms that sold is high, so the building still made RevPAR. | The restaurant looks like the busiest property in Pune. It does not pay the empty rooms. |
What the manager does. The Pune manager does not add a dinner promotion at Kothrud. The empty 150 room-nights are the job (a lower midweek rate, or a stop on a discount that is not in this table). The Nashik manager is fuller (80%) at a lower ADR (₹1,500). The test in the practice file is a higher weekend rate, not more covers. Shivaji Nagar is the Pune pattern to keep: 420 ÷ 600 = 70.0% occupancy and ADR 8,40,000 ÷ 420 = ₹2,000.
Ravindra Bagale's Tip
A common mistake is calling RevPAR the ADR. ADR uses only the nights that were sold. RevPAR also counts the empty nights. The money from an empty room is zero; RevPAR shows that, ADR does not. Remember this.
Ravindra Bagale's Tip – मराठी
एक common चूक म्हणजे RevPAR ला ADR म्हणणं. ADR फक्त विकल्या गेलेल्या रात्री घेतो. RevPAR रिकाम्या रात्री पण घेतो. रिकाम्या room चा पैसा zero आहे, हे RevPAR मध्ये दिसतं. ADR मध्ये नाही. लक्षात ठेवा.
Ravindra Bagale's Tip – हिंदी
एक common गलती है RevPAR को ADR कहना. ADR सिर्फ़ बिकी हुई रातें लेता है. RevPAR ख़ाली रातें भी लेता है. ख़ाली room का पैसा zero है, यह RevPAR में दिखता है. ADR में नहीं. याद रखो.