Module 5 of 6

The numbers a supervisor watches

Read occupancy, ADR and RevPAR using labelled invented examples.

Use a consistent reporting basis

A supervisor uses figures to spot questions worth checking and to explain the shift clearly. Start with the reporting period and definitions. Rooms sold, rooms available and room revenue must refer to the same period and the same reporting basis. Ask which rooms and revenues the hotel's report includes before comparing figures. Do not mix a current live screen with yesterday's closed report and describe the result as today's performance.

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All numbers in this module are invented teaching examples. They are not industry averages, targets or predictions. The examples use one night, a stated inventory of rooms available for sale, rooms sold from that inventory and room revenue on a consistent basis. Food, parking and other non-room revenue are excluded from these room-revenue examples. If a report treats unavailable rooms or complimentary stays differently, use its documented definition and explain that difference before making a comparison.

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A supervisor and colleague review a room-performance report with a calculator. AI-generated illustrative scene.

Phrases to keepClick audio icon to listen

“Are these figures for the same period and reporting basis?”

Check comparability

Occupancy: how much of the inventory sold

Occupancy percentage = rooms sold ÷ rooms available × 100. Invented example: 40 rooms sold out of 50 available gives 40 ÷ 50 × 100 = 80% occupancy. The denominator is the rooms available on the stated basis, not the number of guests. A double room occupied by two people still represents one room sold in this example. Check the room-status records when the available inventory seems inconsistent.

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Occupancy helps you anticipate desk workload, but it does not show how much room revenue was earned. Two shifts with the same rooms sold can face different arrival queues, group patterns or service problems. Compare the number with arrivals, departures and known exceptions before deciding how to deploy colleagues. If a room becomes unavailable, check how the report handles it; do not change the denominator informally just to produce a more attractive percentage.

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Phrases to keepClick audio icon to listen

“The rooms are busy; let us check arrival timing before moving a break.”

Connect a figure to the shift

ADR: the average room rate earned

Average daily rate, or ADR, = room revenue ÷ rooms sold. Invented example: €4,000 room revenue from 40 rooms sold gives €4,000 ÷ 40 = €100 ADR. ADR uses sold rooms in the denominator, not all available rooms. It is an average for the stated period, not the advertised rate of every room and not the amount every guest paid. A mix of booked rates can produce the same average.

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Check rate changes, posting accuracy and the mix of bookings when ADR changes unexpectedly. Do not conclude that a receptionist made a mistake merely because ADR fell. A different combination of room types or approved rates may explain it. Compare like periods and ask for supporting detail. Room revenue is not profit: it does not subtract the hotel's costs. An increase in ADR alone cannot tell you whether the shift was profitable or whether guests received good service.

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Phrases to keepClick audio icon to listen

“The average changed; I will check the booking mix and postings.”

Investigate before concluding

RevPAR: connect rate and occupancy

Revenue per available room, or RevPAR, = room revenue ÷ rooms available. In the same invented example, €4,000 ÷ 50 = €80 RevPAR. On the same reporting basis, RevPAR also equals ADR × occupancy expressed as a decimal: €100 × 0.80 = €80. Use 0.80 for 80%, not 80. RevPAR spreads the room revenue across all available rooms, including those not sold. It is not profit and excludes the non-room revenues excluded from this example.

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Practise with another invented example: 30 rooms sold from 50 available and €3,600 room revenue give occupancy of 60%, ADR of €120 and RevPAR of €72. Compared with the first example, ADR rose while RevPAR fell. A higher ADR alone therefore does not guarantee higher RevPAR. Explain the arithmetic and ask about demand, room availability and booking mix before suggesting a cause. A supervisor should flag a verified change to the responsible manager, not alter rates without authority or promise a result from one number.

For a shift briefing, report the figure, the period, the source and one verified operational implication. For example, a room-status discrepancy needs checking before you trust the available-room count. If you cannot explain a movement yet, say that it is under review. Do not fill a gap in evidence with a confident story about guest behaviour.

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Phrases to keepClick audio icon to listen

“ADR rose, but revenue per available room fell in this example.”

Describe the figures accurately

Quick Shift Check

Invented example: €4,000 room revenue and 50 rooms available. What is RevPAR?

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The numbers a supervisor watches

Use a consistent reporting basis

Occupancy: how much of the inventory sold

ADR: the average room rate earned

RevPAR: connect rate and occupancy

Quick Shift Check

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