Know Your Hotelier Acronyms 

I don’t know about you, but I’m a true hotel nerd at heart. How do I know this? Because even the hotel language gives me happy thoughts. The hospitality world has a rich language of its very own and every hotelier should know that language – I call this ‘hotel speak’. A majority of that language is full of acronyms. Below are the most common used acronyms and terms within hotel speak.  

ADR Average Daily Rate – this is the average rate paid per room you sell in a given time period. This can be calculated by dividing your room revenue by the number of rooms sold. You will want to keep track of your ADR to fine tune your forecasting and LSOPs. I will go further into LSOPs shortly.

RevPARRevenue Per Available Room – is a measurement of a hotel’s revenue per available room. This is calculated by taking total room revenue divided by the total number of rooms available. RevPAR differs from ADR in that RevPAR is affected by the amount of unoccupied rooms and ADR is the average rate of rooms that are actually sold.  

RoHRun of the House – a room assignment that is based off of what the hotel may have available in inventory to sell. When assigning rooms coming in from an OTA for example, they will typically come through as a ROH reservation and is assigned at the front desk’s discretion.

OTAOnline Travel Agent – an online travel and hotel reservation system. Think Expedia, HotelsTonight and Priceline. A hotel will typically allocate a certain number of rooms to an OTA, who will then sell these rooms to their larger audience for a commision. Later we will discuss choosing the right OTAs for your property. 

OOOOut Of Order – Usually when you have either dropped a room for housekeeping purposes or taken the room out of order for maintenance.

GOPPARGross Operating Profit Per Available Room – this metric provides measurement across all hotel revenue streams. That means revenue from rooms, F&B, gift shops and miscellaneous.

Stay tuned and I’ll expand on hotel speak even further and get you talking the lingo at your property in no time.