Average Daily Rate

An occupancy ratio derived by dividing net rooms revenue by the number of ROOMS SOLD.

Average Rate Per Guest

An occupancy ratio derived by dividing net rooms revenue by the number of GUESTS.

Competitive Set

The group of hotels in a market that provide the most important competition for a hotel.

Daily Operations Report

A report that:

• Summarizes the hotel's financial activities during a 24-Hour period
• Provides insight into revenues, receivables, operating statistics, and cash transactions related to the front office

Also known as the Manager's Report.

Forecasting

The process of prediciting events and trends in buisness; typical forecasting for the rooms division includes room avaliability and occupancy.

House Count

The forecasted or expected number of guests for a particular period, sometimes broken down into group and non group buisness.

Hubbart Formula

A bottom-up approach to pricing rooms; in determining the average price per room, this apporoach considers cost, desired profits, and expected rooms sold.

Income Statement

A financial statement that provides important information about the results of hotel operations for a given period of time.

Market Condition Approach

An apporach to pricing that bases prices on what comparable hotels in the hotel's competitive set are charging for a similar product.

Multiple Occupancy Percentage

The # of rooms occupied by more than one guest divided by the # of rooms occupied by guests.

Multiple Occupacy Ratio

A measurement used to forecast food and beverage revenue, indicate clean linen requirements, and analyze daily revenue rate

Derived from the multiple occupancy percentage or by determining the average number of guests per rooms sold.

Also called the double occupancy ratio.

Occupancy Percentage

An occupancy ratio that relates the number of rooms sold to rooms avaliable for sale during a specific period of time.

Occupancy Ratios

A measurement of the hotel's success in selling rooms; typical occupancy ratios include average daily rate, revenue per avaliable room, average rat per guest, multiple occupancy statistics, and occupancy percentage.

Overstay

A guest who stays after his or her stated departure date.

Rack Rate

The standard rate the property establishes for a particular catagory of rooms.

Revenue Per Avaliable Customer

(RevPAC)

A revenue managment measurement that focuses on revenue per actual guest.

Revenue Per Avaliable Room

(RevPAR)

A revenue management measurement that focueses on revenue per avaliable room.

Room Rate Variance Report

A report listing rooms that have not been sold at rack rates.

Rule of Thumb Approach

A cost approach to pricing rooms in which the room rate is set at 1$ for each $1000 of construction and furnishings cost per room, assuming an occupancy of 70%.

Stayover

A room status term indication that the guest is not checking out today and will remain at least on more night; a guest who continues to occupy a room from time of arrival to the stated date of departure.

Understay

A guest who checks out before his or her stated departure date.

Yield Statistic

The ratio of actual rooms revenue to potential rooms revenue.