U.S. hotel industry key performance indicators
To measure the performance of the hotel industry sector three basic benchmark figures are commonly used:
• Occupancy rate
• Average daily rate (ADR)
• Revenue per available room (Revpar)
The occupancy rate denotes the percentage of hotel rooms that are rented out at a given time of all the hotel rooms that are available. In 2016, the occupancy rate of the U.S. hospitality industry was at 65.5 percent, this was the second highest seen since 2001.
The average daily rate (ADR) shows the average rate at which hotel rooms were paid. It is calculated by dividing total rooms revenue by the number of rooms that were occupied. In 2016, the ADR of hotel rooms in the U.S. was at 123.97 U.S. dollars according to data published by STR. In the Americas region, the average daily rate is relatively stable throughout the year. In 2016, the month with the lowest ADR in North America was January with an average daily rate of 117.24 U.S. dollars, the highest was measured in July (127.83 U.S. dollars).
Revenue per available room (Revpar) is a measure of utilization in the hotel industry and can be calculated by multiplying the average daily rate of a property (market) by its occupancy rate. The Revpar of hotels in the United States was 81.19 U.S. dollars in 2016. In 2017, the revenue per available room ranged between 65.33 U.S. dollars (January) and 75.37 U.S. dollars (February).