Hotel Revenue Glossary · Metrics

Complimentary Percentage

The share of total occupied rooms that are provided at no charge. Calculated by dividing complimentary room nights by total occupied room nights. A hotel with 180 occupied rooms and 8 comps has a complimentary percentage of 4.4%.

Why it matters: Monitoring complimentary percentage ensures free rooms are not eroding revenue performance. Properties with high comp percentages may see artificially depressed ADR. Benchmarking this figure against brand standards keeps comp issuance in check.

Worked example: March closes with 4,340 occupied room nights, 96 of them complimentary. Complimentary percentage is 96 / 4,340 = 2.2%. Those 96 nights carry no room revenue but still consume housekeeping and amenities at, say, A$34 each, so A$3,264 of cost. Had half of them sold at the month's A$198 ADR instead, that is 48 x A$198 = A$9,504 the comp policy chose to give away.

Common mistake: Judging the percentage without asking who issued the comps and why. Ninety-six nights spread across service recovery, owner stays, famil visits and sales site inspections are four different decisions with four different returns. A single monthly figure hides which one is running away from you.

All glossary terms Complimentary Room Paid Occupancy ADR (Average Daily Rate)