Hotel Revenue Glossary · Metrics

Room Revenue

The total income generated from selling guest rooms, before deducting expenses, commissions, or taxes. Room revenue is the primary revenue stream for most hotels and the focus of revenue management.

Why it matters: Room-revenue share varies by property, outlet, accounting scope, season, and operating model. ADR and RevPAR use room-revenue scope; compare other departmental revenue and contribution separately and consistently.

Worked example: August closes at A$412,800 of room revenue on 1,860 room nights in a 120-room hotel. ADR is 412,800 / 1,860 = A$221.94; occupancy is 1,860 / 3,720 = 50%; RevPAR is 412,800 / 3,720 = A$110.97. Prove it: A$221.94 at 50% occupancy returns A$110.97. When those three refuse to reconcile, something - a package split, a no-show charge, a tax line - is posting into the wrong bucket.

Common mistake: Allowing package revenue to leak into the rooms line. A A$289 dinner-inclusive rate carrying A$60 of food and beverage must post A$229 to rooms, or ADR, RevPAR and every index built on them run 26% hot. Agree the split with finance once, post it the same way every night, and reconcile monthly.

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