Hotel Revenue Glossary · Operations

Complimentary Room

A room provided at no charge, typically for VIP guests, loyalty program redemptions, staff accommodation, or as service recovery for guest complaints. Complimentary rooms count as occupied for occupancy calculations but generate zero room revenue, which depresses ADR.

Why it matters: Complimentary rooms impact ADR because they increase the denominator (rooms sold) without adding revenue. Revenue managers track comp rooms carefully to understand their true ADR performance and ensure comps are not distorting metrics.

All glossary terms ADR (Average Daily Rate) Occupancy Room Revenue