Free Hotel Revenue Management Lab

Step 1: Property Inventory, Rates & Costs

Hotel Revenue Management Configuration

1. Hotel Property Operations

Room Inventory (Keys)

Days in Period

Paid Occupancy %

Average Daily Rate (ADR)

Ancillary Rev / Occ Room

Operating Cost / Avail Room

Ancillary includes F&B, parking, resort fees, and spa services.

2. Competitive Set (CompSet) Benchmarks

CompSet Market Occupancy %

CompSet Market ADR ($)

RevPAR Index (RGI) Benchmark: RGI > 100 indicates your property is capturing more than its fair share of market room revenue.

RevPAR (Room Revenue)

$175.50

ADR × Paid Occupancy %

TrevPAR (Total Revenue)

$218.40

$786,240 Total Rev

GOPPAR (Operating Profit)

$133.40

$480,240 GOP (61.1%)

RevPAR Index (RGI)

112.9 RGI Index

Outperforming CompSet (105.4 MPI | 107.1 ARI)

Hospitality Economics & Yield Strategy

Mastering Hotel Revenue Management

Revenue management in lodging and hospitality balances pricing power against perishable inventory capacity.

Perishable Capacity: An unsold hotel room night represents 100% lost revenue that can never be recovered.
RevPAR vs. ADR Tradeoff: Cutting ADR to boost occupancy can lower GOPPAR due to higher variable cleaning and wear-and-tear costs.
CompSet Benchmarking: The Revenue Generation Index (RGI) tells operators whether revenue gains stem from superior execution or broad market tailwinds.

Evaluate restaurant food cost in the Food Cost Lab.

Lodging Formulas

Essential hotel revenue formulas

RevPAR = ADR × Occupancy % = Total Room Rev ÷ Total Available Rooms

TrevPAR = (Total Room Rev + Ancillary Rev) ÷ Available Rooms

GOPPAR = Total Gross Operating Profit ÷ Available Rooms

Market Penetration Index (MPI) = (Property Occ % ÷ CompSet Occ %) × 100

Average Rate Index (ARI) = (Property ADR ÷ CompSet ADR) × 100

Revenue Generation Index (RGI) = (Property RevPAR ÷ CompSet RevPAR) × 100

Calculate property capitalization rates in the Real Estate & Cap Rate Lab.

FAQ

Hotel revenue management questions

What is the difference between ADR, RevPAR, and TrevPAR?

ADR (Average Daily Rate) measures revenue per occupied room. RevPAR (Revenue Per Available Room = ADR × Occupancy %) measures room revenue across total room capacity. TrevPAR adds ancillary spending (F&B, spa, parking, resort fees) per available room.

How do you calculate GOPPAR in hotel management?

GOPPAR (Gross Operating Profit Per Available Room) = Total Gross Operating Profit ÷ Total Available Room Nights. It measures true bottom-line operational profitability after departmental and undistributed expenses.

What are MPI, ARI, and RGI (RevPAR Index)?

MPI (Market Penetration Index) compares your occupancy against your competitive set. ARI (Average Rate Index) compares your ADR. RGI (Revenue Generation Index / RevPAR Index = (MPI × ARI) / 100) measures whether you are capturing more than your fair share of market revenue (>100 is outperforming).

Why is high occupancy not always better for RevPAR and GOPPAR?

Selling out at heavily discounted rates increases variable housekeeping and maintenance costs without maximizing room revenue. Maximizing RevPAR and GOPPAR often requires holding higher ADR at moderate occupancy.

Can I export hotel revenue management and CompSet models to CSV?

Yes. You can export complete room counts, occupancy, ADR, RevPAR, TrevPAR, GOPPAR, and CompSet penetration indices as a UTF-8 CSV spreadsheet with formula injection defense.

Is this tool certified lodging appraisal or STR report software?

No. This tool provides educational revenue management simulations for hospitality analysis without certified lodging appraisal or commercial STR benchmarking warranties.

Continue Exploring Hospitality & Lodging Tools

Explore our Hospitality & Food Service Hub, analyze restaurant plate costs in the Food Cost Lab, model cap rates and NOI in the Commercial Real Estate Lab, or check operation prime costs in the RevPAR & Prime Cost Lab.