Hotel Revenue Glossary · Metrics

Revenue Per Square Foot

Total revenue divided by the total rentable square footage of the property. This metric normalizes revenue performance across properties of different sizes and is especially useful for comparing meeting space, event venues, and mixed-use assets.

Why it matters: Revenue per square foot allows meaningful comparison between hotels with different room counts and layouts. It is particularly valuable for evaluating meeting space profitability and determining whether space is being optimized for its highest-value use.

Worked example: Picture a function room of 1,800 square feet hosting a dinner that bills A$14,400, which is A$8.00 per square foot for the day. The same 1,800 feet let as a day-delegate meeting for 60 people at A$85 returns A$5,100, or A$2.83 per square foot. Take the meeting when the dinner will not materialise, or when the meeting fills bedrooms the dinner would not.

Common mistake: Comparing revenue per square foot across spaces without holding time constant. A ballroom earning A$8.00 per square foot on one four-hour dinner and a lounge earning A$8.00 across a full trading day are not equivalent. Fix the unit first, per square foot per hour or per day, before either number decides anything.

All glossary terms TRevPAR (Total Revenue Per Available Room) GOPPAR (Gross Operating Profit Per Available Room) Total Revenue Management