hotel key performance indicators
TRANSCRIPT
Hotel Key Performance Indicators
1. Introduction
A Key Performance Indicator (KPI) is a measurable value that tells thebusiness how well it is performing in different areas: Revenues, Costs andProfitability. Tracking overall hotel and departmental KPIs on a regular basisassesses performance and can provide comparative analysis for qualitydecision making.
This document shows common financial KPIs used in hotels. A hotel maydetermine which KPIs are most relevant to their business. They are listed asboth revenue and cost.
The following KPIs should be consistently tracked by Hotels with the option toinclude more such as Utilities or sales and marketing as a percentage of totalsales.
• Revenue
• Rooms: Occupancy, ADR (Average Daily Rate), RevPAR (Revenue peravailable room)
• F&B: Food and Beverage Gross Margins, Customer Average Spend,
• Other Departments: relevant revenue KPI, e.g. average spend
• TRevPAR and TRevPOR (Total Revenue Per Available Room, TotalRevenue per Occupied Room)
• Department Costs (e.g. Rooms, F&B, Leisure, etc.)
• Payroll %
• Cost of Sales %
• Other Costs %
• Profitability
• Department Profit %
• Gross Operating Profit %
• EBITDA %
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2. Overall Hotel KPIs
2.1 Hotel Revenue KPIs
The following are the main revenue KPIs tracked by hotels. When
analysing both TRevPAR (Total Revenue per Available Room) and
TRevPOR (Total Revenue per Occupied Room) the mix of business of
the hotel should be taken into consideration, particularly if there are
large levels of non-rooms related F&B revenues.
2.2 Hotel Cost KPIs
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Total Department Profit
Total Department Revenue
Gross Operating Profit
Total Revenue
EBITDA
Total Revenue
Total Revenue
Total Available Rooms
Total Revenue
Total Occupied RoomsTRevPOR
Total Department Profit %
Gross Operating Profit %
EBITDA %
TRevPAR
= = %x 100
= €
= €
=
=
x 100= = %
= x 100 = %
Total Department Costs
Total Department Revenue
Undistributed Costs
Total Revenue
Total Payroll Costs
Total Revenue
Undistributed Cost %
Total Payroll Cost %
Total Department Cost %
= x 100 = %
= x 100 = %
= x 100 = %
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3. Rooms Department KPIs
3.1 Rooms Revenue KPIs
The three main KPIs that should be tracked by all hotels includeADR (Average Daily Rate), Occupancy and RevPAR (Revenue perAvailable Room).
3.2 Rooms Costs KPIs
Commissions % = Commissions Cost x 100 = %
Total Rooms Revenue
Rooms Payroll Cost % = Rooms Payroll Costs x 100 = %
Total Rooms Revenue
Other Rooms Dept Cost % = Other Rooms Department Costs x 100 = %
Total Rooms Revenue
Total Rooms Dept Cost % = Total Rooms Department Costs x 100 = %
Total Rooms Revenue
Cost per occupied Room = Cost item (expense) = €
Total Occupied Rooms
Occupancy =Number of rooms sold
x 100 = %Number of rooms available
Average Daily/Room Rate =Total rooms revenue
= €Total occupied rooms
Revenue Per Available Room =Total Rooms Revenue
= €Total Rooms Available
Revenue Per Available Room =Occupancy x ADR
= €0
Total Rooms Dept Profit % =Total Rooms Department Profit
x 100 = %Total Rooms Department Revenue
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4. Food and Beverage (F&B) Department KPIs
4.1 F&B Revenue KPIs
There are several F&B revenue KPIs that a hotel can track, whichare shown below. Most commonly tracked are gross margins andaverage spend. In analysing average spend it would be worthcompleting this on a mean period basis. For example, averagespend per lunch or average spend per dinner. The BreakfastInnovation Toolkit on the Fáilte Ireland website can also provideadditional guidance around the hotel breakfast.
See link here: https://covid19.failteireland.ie/operational-performance-capacity-calculators/strategic-food-beverage-operations/breakfast-innovation-toolkit/
Total F&B Dept Profit % = Total F&B Department Profit x 100 = %
Total F&B Department Revenue
Gross Food Margin % = Food Revenue x 100 = %
Cost of Goods (Food) Sold
Gross Beverage Margin % = Beverage Revenue x 100 = %
Cost of Goods (Beverage) Sold
Average Spend per Cover = Revenue = €
Number of Covers
F&B Revenue POR = F&B Revenue = €
Total Occupied Rooms
F&B Revenue PAR = F&B Revenue = €
Available Rooms
Revenue per available = F&B Revenue = €
seat per hour Seats available x number of hours
Table Turn Rate = Time = Number
Number of tables served (during that time)
Average Table Occupancy = Tables Occupied x 100 = %
Tables Available
F&B Revenue = F&B Revenue = €
per wait staff Number of wait staff
Breakfast sit down rate = Breakfast covers x 100 = %
Guest nights
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4.2 F&B Cost KPIs
5. Spa and Leisure Department KPIs
There are several spa and leisure centre KPIs that can be used to
track performance of these departments. In order to track these
effectively, it will be important that departmental revenues and
costs are allocated correctly. If costs are combined for these
departments, for example payroll, then revenues should also be
combined. Relevant spa or leisure centre KPIs should be calculated
if possible. For example, specific spa KPIs such as Revenue Per
Available Treatment Room or average spend per spa customer
should be based on spa only revenues; and average revenue per
class or member retention rate should be based on leisure centre
only revenues.
Food Cost of Sales
Food Revenue
Beverage Cost of Sales
Beverage Revenue
Food & Beverage Cost of Sales
Total Food and Beverage Revenue
F&B Payroll Costs
F&B Revenue
Other F&B Department Costs
F&B Revenue
(Opening Inventory + purchases) - Closing inventory=
Beverage Cost of Sales %
Total F&B Cost of Sales %
F&B Payroll Cost %
Other F&B Dept Cost %
Cost of Sales
= x 100
Food Cost of Sales %
= %
= x 100 = %
%
= x 100 = %
= x 100 = %
= x 100 =
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5.1 Spa and/or Leisure Revenue KPIs
Total Number of treatment hours sold
Total Number of treatment hours available
Total Spa Treatment Revenues
Total Number of Treatments Sold
Total Spa Revenue
Total Number of treatment hours available
ATR X TRU
0
Spa Revenue
Number of Customers
Total Spa/Leisure Department Profit
Total Spa/Leisure Department Revenue
Spa Revenue
Total Occupied Rooms
Total guests visiting the spa
Total guests staying at the hotel
Total Retail Guests
Total Spa Guests
Total Leisure Centre Membership Revenues
Total Number of members
Total Leisure Centre Revenue
Total square feet/metres of Leisure Centre
Total Class Revenue
Total number of classes
= €
= €
= €
= x 100 %
= x 100 %
= €
= x 100 %
= €
= €
=
=
Revenue Per Available Treatment Room
Revenue Per Available Treatment Room =
= x 100 %
= €
€
Revenue per Member
Revenue per square foot/metre
Average revenue per class
Average Spend per Spa Customer
Total Spa/Leisure Dept Profit %
Spa Revenue POR
Guest Capture Rate
Retail Capture Rate
Treatment Room Utilisation (TRU)
Average Treatment Rate (ATR)
=
=
=
=
=
=
=
=
=
=
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5.2 Spa and/or Leisure Cost KPIs
Cost of Sales
Total Spa/Leisure Revenue
Spa and Leisure Payroll Costs
Total Spa/Leisure Revenue
Other Spa/Leisure Department Cost
Total Spa/Leisure Revenue
Total Spa/Leisure Department Costs
Total Spa/Leisure Revenue
Performed service hours
Available Service hours
Cost of Sales %
Spa and Leisure Payroll Cost %
Other Spa/Leisure Dept Cost %
Total Spa/Leisure Dept Cost %
Therapist Utilisation
= %= x 100
=
= x 100 = %
x 100 = %
= x 100 = %
= x 100 = %