What is RevPAR and how is it calculated?

RevPAR (Revenue Per Available Room) is total room revenue divided by the number of available rooms over a period. It can also be calculated as ADR multiplied by Occupancy. RevPAR combines pricing power and demand into a single comparable metric — the industry standard for hotel performance measurement under USALI 11th Edition.

How does Ilora.ai analyze hotel financials?

Ilora’s Hotel agent ingests USALI-format P&Ls, STR reports, and PMS extracts, then benchmarks each property against SEC EDGAR public hotel REIT filings (HST, PK, SHO, XHR, DRH). It tracks RevPAR, ADR, Occupancy, GOPPAR, TRevPAR, and CPOR, surfacing where the hotel under-performs comparable institutional assets and which departments have the largest improvement opportunity.

What is GOPPAR and why does it matter more than RevPAR?

GOPPAR (Gross Operating Profit Per Available Room) is GOP divided by available rooms. Unlike RevPAR which only captures top-line, GOPPAR reflects the profitability after departmental and undistributed operating expenses. Two hotels with identical RevPAR can have 1000+ basis points of GOPPAR difference based on cost discipline.

How do I benchmark my hotel against public REITs?

Public hotel REITs file detailed quarterly performance — Host Hotels (HST), Park (PK), Sunstone (SHO), Xenia (XHR), DiamondRock (DRH) — under USALI standards. Ilora.ai pulls these from SEC EDGAR and benchmarks your hotel against the relevant peer set (luxury, upper-upscale, full-service, select-service) on the metrics that match your asset class.

What is the difference between branded, independent, and managed hotels?

Branded hotels operate under a flag (Marriott, Hilton, IHG, Hyatt) under franchise or management agreements; independent hotels operate without a flag, often soft-branded or boutique. Managed hotels are operated by a third-party management company under an HMA contract, while owner-operated hotels are run directly by the asset owner. Each model has different fee, performance, and cost structures.

Hotel KPIs.

Hotels are full-service or limited-service lodging operations turning over guests on a daily basis. Performance is measured in USALI 11th Edition KPIs — RevPAR, ADR, Occupancy, GOPPAR, TRevPAR — and benchmarked against SEC EDGAR public hotel REIT filings (HST, PK, SHO, XHR, DRH, BHR). Revenue management, total revenue capture across rooms + F&B + ancillary, and labor productivity are the value levers. Most hotels operate under a brand flag (Marriott, Hilton, IHG, Hyatt) with a separate management company under HMA contracts. Ilora.ai ingests USALI-format P&Ls, STR STAR Reports, daily flash + 30/60/90 forecasts, group production reports, and PMS extracts (Opera Cloud, Mews, Cloudbeds), then audits department-level cost ratios and benchmarks RevPAR Index + GOPPAR + TRevPAR against the comp set. AHLA, AAHOA, HSMAI, HFTP, and STR are the canonical industry organizations and data standards for hotel real estate analytics, performance benchmarking, and lodging-asset operations.

17 definitions · Sector: HOSPITALITY · Used by Ilora.ai specialist AI agents

NOI: Total revenue minus operating expenses (excludes financing and capital costs). The primary measure of property-level profitability.
Cap Rate: Net Operating Income divided by current property value. Expresses unleveraged annual yield as a percentage.
DSCR: Net Operating Income divided by total annual debt service. Lender-required cushion measure; below 1.0 means NOI cannot cover debt.
LTV: Loan amount divided by property value. Lower LTV = lower lender risk.
OER: Operating expenses divided by gross revenue. Lower is better, but varies by property type (hotels run higher than triple-net retail).
GRM: Property value divided by gross annual rental income. Quick valuation shortcut; less precise than cap rate.
IRR: Annualized return on investment accounting for time value of money across the full hold period.
CoC: Pre-tax annual cash flow divided by total cash invested. Measures the cash yield, not total return.
DCF: Valuation method that projects future cash flows and discounts them to present value at a chosen rate.
TTM: A rolling sum of the most recent 12 months. Smooths seasonality for KPI comparisons.
RevPAR: Total room revenue divided by available rooms over a period. Combines rate and occupancy into one metric.
ADR: Total room revenue divided by rooms sold. Measures pricing power.
Occupancy: Rooms sold divided by available rooms. Demand measure.
GOPPAR: Gross Operating Profit divided by available rooms. Profit-side complement to RevPAR.
TRevPAR: Includes room + F&B + ancillary revenue divided by available rooms. Captures total guest spend, not just rooms.
CPOR: Variable costs divided by rooms sold. Used to compare cost efficiency between properties of different scale.
Flow-Through: Incremental GOP as a percent of incremental revenue. Measures how well a property converts revenue gains into profit.

Sub-types

Sub-types within Hotel.

Limited-Service Hotel: Rooms-focused with breakfast and limited public space; lowest opex ratio.
Select-Service Hotel: Limited F&B + small meeting space; mid-tier opex.
Full-Service Hotel: Three-meal restaurant, banquet space, full back-of-house.
Upper-Upscale / Luxury: Premium service ratios, multiple F&B outlets, spa, concierge.
Boutique Independent: Soft-branded or independent with experiential focus.

Amenities & features

9 amenities Ilora.ai tracks for Hotel.

Guest Rooms: Sleeping rooms with private bath. Drives RevPAR + occupancy.
RevPAR
ADR
Occupancy
On-Site F&B: Restaurant + bar + room-service operations. Tracks separately under USALI Schedule 4.
F&B revenue per occupied room
Cost of sales %
Beverage cost %
Spa: On-property wellness facility offering treatments and product sales.
Treatments per available guest
Average treatment revenue
Spa capture rate
Conference / Banquet Space: Meeting rooms + ballroom for groups, corporate, social events.
Banquet revenue per occupied group room
Catering profit margin
Slip occupancy %
Pool / Recreation: Pool, fitness center, recreation amenities.
Cabana revenue
Pool F&B capture
Parking: Self-park or valet parking operation.
Parking revenue per occupied room
Valet capture %
Concierge / Guest Services: Front-of-house guest assistance, often tied to upsell programs.
Upsell capture per check-in
Guest satisfaction score
Resort Fees: Mandatory daily charge bundling amenity access. Resort/upper-upscale only.
Resort fee per occupied room
Resort fee acceptance rate
Loyalty Program Capture: Brand loyalty members as % of check-ins. Drives direct booking.
Loyalty member contribution %
Direct booking %

Industry reference

How the hotel sector operates.

Market segments

Transient (leisure)
Transient (corporate)
Group (association)
Group (corporate)
Government / per-diem
Crew / contract
Wholesale / OTA

Operating models

Owner-operated independent
Owner-operated branded (franchise)
Third-party managed (HMA contract)
Operator-leased
REIT-owned + managed

Regulatory frameworks

USALI 11th Edition (uniform system of accounts for lodging industry)
STR Reporting Standards
ADA Title III accessibility
Local TOT/lodging tax compliance

Industry organizations

AHLA (American Hotel & Lodging Association)
AAHOA (Asian American Hotel Owners Association)
HSMAI (Hospitality Sales & Marketing Association International)
HFTP (Hospitality Financial & Technology Professionals)
STR (Smith Travel Research)
CBRE Hotels Americas Research

Comparable public REITs / operators

HST (Host Hotels & Resorts)
PK (Park Hotels & Resorts)
SHO (Sunstone Hotel Investors)
XHR (Xenia Hotels & Resorts)
DRH (DiamondRock Hospitality)
BHR (Braemar Hotels & Resorts)
APLE (Apple Hospitality REIT)
CHH (Choice Hotels)
H (Hyatt Hotels)
MAR (Marriott)
HLT (Hilton Worldwide)

Documents Ilora.ai ingests

Monthly P&L (USALI format)
STR STAR Report (weekly)
Daily flash report
Forecast (rolling 30/60/90)
Pace report
Group production report
Banquet event orders (BEOs)
F&B cost-of-sales report
Capital plan / FF&E reserve schedule
PMS extract (Opera, Mews, Cloudbeds)

Industry tools (we integrate with these)

Opera Cloud (PMS)
Mews (PMS)
Cloudbeds (PMS)
IDeaS G3 (revenue management)
Duetto (revenue management)
M3 (accounting)
ProfitSword (BI)
STR Insight Solutions
Lighthouse (rate intelligence)
TravelClick (CRS/distribution)

Frequently asked

Common questions about hotel.

What is RevPAR and how is it calculated?: RevPAR (Revenue Per Available Room) is total room revenue divided by the number of available rooms over a period. It can also be calculated as ADR multiplied by Occupancy. RevPAR combines pricing power and demand into a single comparable metric — the industry standard for hotel performance measurement under USALI 11th Edition.
How does Ilora.ai analyze hotel financials?: Ilora’s Hotel agent ingests USALI-format P&Ls, STR reports, and PMS extracts, then benchmarks each property against SEC EDGAR public hotel REIT filings (HST, PK, SHO, XHR, DRH). It tracks RevPAR, ADR, Occupancy, GOPPAR, TRevPAR, and CPOR, surfacing where the hotel under-performs comparable institutional assets and which departments have the largest improvement opportunity.
What is GOPPAR and why does it matter more than RevPAR?: GOPPAR (Gross Operating Profit Per Available Room) is GOP divided by available rooms. Unlike RevPAR which only captures top-line, GOPPAR reflects the profitability after departmental and undistributed operating expenses. Two hotels with identical RevPAR can have 1000+ basis points of GOPPAR difference based on cost discipline.
How do I benchmark my hotel against public REITs?: Public hotel REITs file detailed quarterly performance — Host Hotels (HST), Park (PK), Sunstone (SHO), Xenia (XHR), DiamondRock (DRH) — under USALI standards. Ilora.ai pulls these from SEC EDGAR and benchmarks your hotel against the relevant peer set (luxury, upper-upscale, full-service, select-service) on the metrics that match your asset class.
What is the difference between branded, independent, and managed hotels?: Branded hotels operate under a flag (Marriott, Hilton, IHG, Hyatt) under franchise or management agreements; independent hotels operate without a flag, often soft-branded or boutique. Managed hotels are operated by a third-party management company under an HMA contract, while owner-operated hotels are run directly by the asset owner. Each model has different fee, performance, and cost structures.

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