As an owner, you oversee decisions. Understanding the terminology is key to asking the right questions and weighing in on the discussions at a high level. Your employees and advisors will do additional analysis and make the day-to-day operating decisions.
As an owner, there are two categories of numbers that are vital to grasp: market numbers and financial numbers.
Market numbers: These numbers include Key Performance Indicators (KPI) like occupancy, average daily rate and Revenue Per Available Room (RevPar). Other market metrics are the market mix, length of stay, business pick-up called pace, channel delivery, group bookings, repeat business, top customer production, and any other information related to the hotel’s revenue.