10 Boutique Hotel KPI Metrics to Track and How to Calculate

A boutique hotel is a great way to add personality and style to your property. But it’s also a great way to increase revenue and increase profits. How do you know if your boutique hotel is performing at its maximum potential? One of the best ways to measure success is through key performance indicators or KPIs. In this blog post, we will cover some common hotel KPI metrics that are useful for boutique hotel owners and managers. And then we’ll help you calculate those metrics so they can be used effectively in your business plan!

1. Net reservations

Net bookings are the total revenue generated by a hotel or resort. It’s calculated as the total revenue from rooms, food and beverage, other sources of revenue (like spa services), and anything else you might have on-site that earns money for your hotel. This number can be complicated to calculate because it involves calculating gross operating profit and then subtracting a few expenses: cost of goods sold and general operating expenses.

For example, if your KPI is net bookings and you know that last quarter your boutique hotel made 0,000 in total room sales but spent ,000 on food costs alone (including ingredients) , you’ll need to determine what exactly is included in the ,000 figure so that you can break each expense down into its own separate line item when tracking the profitability of each type of activity within your business model.

2. Occupancy rate

The occupancy rate is a measure of how the hotel operates. The occupancy rate is calculated by dividing the number of rooms occupied by the total number of rooms available.

For example, if you have 100 rooms and 75 of them are occupied, your occupancy rate would be 75%.

The occupancy rate can be calculated daily, monthly or annually.

3. Average Daily Rate

The Average Daily Rate is the average of all available rooms, over a given period. This can be calculated by dividing the hotel’s total revenue by the number of rooms available.

ADR is an important metric for hotels because it shows how much money you bring in per day and helps you compare different locations with each other.

For example, if your ADR is 0 and there are 100 rooms in total, the average rate is 2 x 100 = 0. If this same hotel had 200 rooms overall and earned million, the ADR would still be 2 x 200 = 0 – but now there are twice as many rooms (100) so we have multiplied our revenue before twice itself ( 100 times itself).

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4. average length of stay

Length of stay is a key metric that boutique hotels should track. Length of stay is the average number of nights a guest stays at your hotel.

The longer your average length of stay, the more money you earn! If a guest checks out on day 7, but only spends three days at your hotel, they have generated 3 of 7 out of 7 nights at your hotel. This means that for each night you had one less guest than you could have had if all of your guests were staying longer than 7 nights.

On the other hand, if someone visits on day 1 and leaves after three days, they have generated 2 out of 3 nights staying at your boutique hotel (1/3). This means that for each night you had two fewer guests than you could have if all of your guests had stayed longer than 3 nights.

5. Cost per acquisition

Cost per acquisition metric is one of the most important in your dashboard. It’s a way to compare the effectiveness of different channels, as well as track whether you’re improving over time.

To calculate cost per acquisition:

• Take the total amount you spent on marketing and divide it by the number of users who converted (i.e. booked a room). This number will give you an average cost per acquisition over time – and should help you identify which channels drive more traffic and conversions than others.
• Compare each channel’s average cost per acquisition against each other to see which have been more successful in generating leads/bookings than others over time, so you can focus on those channels in the future.

6. Direct booking ratio

This is the percentage of total bookings made directly through your website or mobile app. Direct bookings are an important indicator of how well your website and marketing efforts are performing, as it indicates the type of quality you expect from potential customers. As such, direct booking rates can tell you a lot about how much you can charge for rooms in the future and serve as a benchmark for determining whether or not to invest more money in upgrading. of these channels.

7. Revenue per piece available

Revenue per available room (RevPAR) is a metric that measures revenue performance for each available room in a boutique hotel.

RevPAR is calculated by dividing total revenue by total coins:

Revpar = Total revenue / total parts

It is important to note that this is not the same as actual room revenue, which would be calculated differently as it includes all direct guest revenue (accommodation, food and drink).

8. Gross operating profit per available piece

Gross operating profit per available room (GOPAR) is a measure of the amount of a hotel’s revenue per available room. It is calculated by dividing the gross operating profit by the total number of rooms available.

Gopar Indicates whether or not a hotel generates sufficient revenue to cover its expenses and achieve profitability. The higher your Gopar, the better you are because it means you have more money for each room that is occupied at any given time.

9. Net operating income

Net operating income (NOI) is a measure of a hotel’s profitability. It’s based on the difference between what you charge for rent and room rates, and what it costs to run the property.

To get NOI, you will first need to calculate your gross income by adding up all your expenses and sources of income during that period (again, this can be done monthly or annually). Then, subtract any additional expenses from that amount — like loan interest payments or business taxes paid to local governments — to find out how much money was left over after all other expenses were covered.

This number can be divided by total occupancy for each type of unit in your hotel to determine how much each room generates on average per night.

For example: if there were 20 rooms available at 0/night with an average occupancy rate of 80%, each room would generate /night (or 0/week).

10. Customer Satisfaction Score

Guest satisfaction is a measure of how your guests are enjoying their stay. This metric is based on guest reviews and surveys, which you can use to improve your boutique hotel.

You can calculate the customer satisfaction score by taking the average of all your responses from a particular survey or question. Alternatively, if you’re using an online booking platform like Booking.com or Expedia that has room ratings in its database, you can just plug them into an equation to get a number for each day or week without having to create surveys yourself!

Conclusion

In conclusion, we hope you found this article useful. We know measuring these measurements can be tricky, but we’re here to help! If you need more advice or assistance with your store KPI metrics, please don’t hesitate to contact us.