Percentage of Occupancy The percentage of available rooms occupied for a given period. It is computed by dividing the number of paid guest rooms occupied for a period by the number of rooms available for the same period.
Average Daily Rate Total guest room revenue for a given period divided by the total number of paid occupied rooms during the same period.
RevPAR Rooms revenue divided by the annual number of available rooms.
Average Size (Room) Number of daily guest rooms available for rent.
REVENUES
Rooms Revenue derived from the rental of sleeping rooms, no-show charges, early departure and late checkout fees, pet fees, and charges for rollaway beds and cribs.
Food and Beverage Revenue from the sale of food and alcoholic and non-alcoholic beverages in restaurants, lounges, room service, mini-bar, and banquet rooms. Also includes revenue from public room rentals, service charges, and the rental of audio/visual and other meeting room equipment.
Other Operated Departments Revenues from departments operated by the hotel such as telecommunications, internet connections, guest laundry, retail shops, recreational facilities, and parking operations.
Rentals and Other Income Revenues from the rental of stores or other space in the hotel for activities not operated by the hotel. Also includes income from interest, cash discounts, cancellation and attrition penalties, and other services provided to guests by outside firms for which the hotels receives a commission or concession.
COSTS AND EXPENSES
Rooms Includes salaries, wages, and benefits for the front desk personnel, reservations staff, housekeeping and laundry workers, bell staff, and concierge personnel. In addition, rooms department expenses include linen, guest supplies, commissions to travel agents, complimentary breakfast and social hour costs, and reservation system charges assessed by franchise companies.
Food and Beverage Includes the costs of food and alcoholic and non-alcoholic beverages sold, together with the salaries, wages, and employee benefits for managers, kitchen personnel, servers, bartenders, cashiers, and hosts. Other applicable expenses include laundry, linen, china, glassware, silverware, operating supplies, audio/visual equipment, music, and entertainment.
Other Operated Departments Includes the salaries, wages, benefits, cost of goods sold, and other expenses associated with the operation of other revenue producing departments operated by the hotel.
Administrative and General Expenditures for the operations of the general manager’s office, the accounting department, human resources, security, information systems, and other similar activities. Examples of expenditures include salaries, wages, benefits, professional fees, credit card commissions, bad debts, telecommunications and computer maintenance, office supplies, and postage.
Sales and Marketing Expenditures to sell and promote the hotel’s services and enhance its image to the general public. These include salaries, wages, benefits, media advertising, agency fees, e-commerce, outside sales representation, outdoor advertising, trade shows, and public relations. Also included in this expense category are payments made to franchisors and referral agencies for franchise royalties, marketing assessments, and guest loyalty programs. Does not include payments made for reservation services and/or systems.
Property Operations and Maintenance Payments for salaries, wages, benefits, maintenance contracts, tools, and supplies to maintain the buildings, grounds, furniture, and equipment of the hotel. Not included are costs associated with the maintenance of computer, point-of-sale, and telecommunications systems, as well as major capital purchases.
Utilities Costs for electricity, gas and other fuels, steam, water, and sewer.
Management Fees Fees paid for management services and supervision of the property. Includes both base and incentive fees.
Property and Other Taxes Includes real estate taxes, personal property taxes, business and occupation taxes, and all other taxes except payroll and income taxes.
Insurance Includes premiums paid for insuring buildings and contents, liability, fidelity, and theft coverage. Premiums for workers’ compensation insurance are not included in this category.
Other Fixed Charges Includes deductions for capital replacement reserves, rent, interest, depreciation, amortization, and income taxes. Comparisons beyond income after property taxes and insurance are virtually meaningless due to wide variances in ownership, depreciation methods, financing bases, and applicable taxes.
