HospoGuy Accommodation Acronyms & Numbers
A quick-reference guide to some of the terms, acronyms and calculations you’ll hear every day in the accommodation industry.
Everyday terminology
PMS
The software at the heart of an accommodation business.
It typically manages reservations, guest details, room allocation, rates, availability, payments, housekeeping and reporting.
Examples include Mews, Seekom and GuestPoint, along with many other accommodation management platforms.
OTA
A third-party website or platform that sells accommodation rooms online.
Examples include Booking.com and Agoda.
OTAs can be an important source of bookings, but keep an eye on commission costs and continue encouraging direct bookings.
The numbers every operator should know
Occupancy %
How many of your available rooms did you sell?
Example: 40 rooms sold ÷ 50 rooms available = 80% Occupancy
ADR
The average room revenue earned for each room sold.
Example: $8,000 room revenue ÷ 40 rooms sold = $200 ADR
RevPAR
Shows how effectively you generate room revenue from every available room, whether sold or unsold.
Example: $8,000 room revenue ÷ 50 available rooms = $160 RevPAR
Useful shortcutADR × Occupancy % = RevPARUse Occupancy as a decimal in calculations: 80% = 0.80.
Try your numbers
Enter figures for the same period, such as one day or one month. Use available room nights and sold room nights for a period longer than a day.
Room revenue only; exclude extras such as meals and parking. Results are estimates based on the figures you enter.
Quick reference
ARR
Another term commonly used for the average rate achieved on occupied rooms.
ARR and ADR often measure effectively the same thing, although terminology varies between systems and markets.
ALOS
Average number of nights guests stay per booking.
Example: 120 room nights ÷ 50 bookings = 2.4 nights ALOS
GPR
Average number of guests staying in each room sold.
Example: 72 guests ÷ 40 rooms = 1.8 guests per room
Double / Multiple Occupancy %
The proportion of occupied rooms containing more than one guest.
Useful when forecasting breakfast numbers, linen usage, amenities and other per-person operating costs.
MOR
Another measure of how many occupied rooms contain more than one guest.
ARG
Average room revenue generated per staying guest.
Example: $8,000 room revenue ÷ 72 guests = $111.11 per guest
Break-Even Occupancy %
An estimate of the occupancy level required for room revenue to cover relevant operating costs.
True break-even calculations can be more detailed because fixed costs, variable room costs and average room rate all affect the result.
Keep This Page Handy
This HospoGuy guide is designed as a quick reference for hotel, motel, holiday park and accommodation operators — particularly anyone new to the industry who suddenly finds themselves surrounded by PMSs, OTAs, ADRs, RevPAR and ALOS.
HospoGuy — practical hospitality advice from someone who’s been there.