The Hotel Gurus

First account on hotel management | Financial focus on hotel management | How to buy or sell a hotel | How to optimise KPIs |

[The Hotel Gurus @Thehotelgurus]

Don’t stop using #OTAs ! They generate #Traffic that you can’t.
Bring in clients thanks to #OTA
Offer a great service & value
Create a privileged relationship with the client
-> next time, they’ll book directly !

[The Hotel Gurus @Thehotelgurus]

#Paris2024 #rugbyworldcup2023

How to optimize your #hotel revenue with a big event approaching ?
1. Don't rush, trying to sell all your rooms to soon.
2. Trial and error : open a few rooms and increase the price progressively
3. Constantly look at your competition

[The Hotel Gurus @Thehotelgurus]

#Paris2024 #Olympics a study shows that 130,000 listings will be available on Airbnb with nightly pricing increasing 70% on average.

What about hotels ?

#hotel #hotels

[The Hotel Gurus @Thehotelgurus]

Understanding RevPAR is essential to an efficient management of the hotel. Most manager overlook it as it is a bit complex.
You cannot be a good manager if you don't track useful KPIs.

[The Hotel Gurus @Thehotelgurus]

RevPAR : The most important metric of them all! Also more complex.
RevPAR reflects your ability to fill your available rooms at an average rate.
@Marriott @HiltonHotels @Accor_Arena @Hyatt
#franchise #hotel #Management #KPI #Hilton

[The Hotel Gurus @Thehotelgurus]

Opinion
You want it to be high but the closer your RevPAR to your ADR, the more it means that your price is too low. So it should be fairly lower than ADR.
Usually 20% lower.

[The Hotel Gurus @Thehotelgurus]

Now if OR is 80%, and the price seems right when looking at other competitors, the investor might think "Ok there's not much more I could do here" The might still go through with the deal, but for other reasons then increasing the value of the hotel

[The Hotel Gurus @Thehotelgurus]

#Occupancy rate (OR)
Most monitored metric of a #hotel. Simply put, it means “How full is your hotel?” You generally want it to get as high as possible HOWEVER too high an OR could mean mismanagement. Let’s dig into it:

#hotel #KPI #hotel #hotels #metrics #Management

[The Hotel Gurus @Thehotelgurus]

Now take the case of the same EBITDA level but at 100% OR -> Buyer might think "Oh I could increase the price, reduce the OR and also the costs and increase EBITDA

[The Hotel Gurus @Thehotelgurus]

Bottom line → Track ADR but place it in context. Alone it has no meaning. Add in occupation rate, length of stay, cohort analysis for rooms etc.
We’ll focus on those in the following tweets

#ADR #metrics #hotelmetrics #hotelmanagement #hotel

[The Hotel Gurus @Thehotelgurus]

[Read thread for calculation, example and opinion]

ADR : This is the most basic of all metrics. ADR measures the revenue you make over the rooms that you sold. Anyone asks, you should be able to pull your daily, monthly and yearly ADR off the top of your head.

[The Hotel Gurus @Thehotelgurus]

ADR only tells you half the story tho.
Ok you charge $100 / night but if that means that 75% of your hotel is empty -> you should probably lower the price and sell more rooms. Problem is ADR only tells you “Hey you’re great you sell for $100 average !