What Is Hotel ROI Calculation ?

It is important for hoteliers to measure its hotel’s success and it mostly about the hotel return on investment and whether it is making the most of the technology it has incorporated.

This is where a hotel ROI calculator comes into the scenario. It helps you measure rates of return on hotel investments and improve your hotel bottomline — whether it’s about increasing efficiency or making operations seamless or reducing labour costs or increasing revenue.

How to calculate your hotel ROI ?

• The general way to calculate ROI is:
  ROI = Investment Gain / Investment Base
  ROI = Investment Gain / Investment Base
  With Hotelogix ROI Calculator, you don’t have to do the math. However, there are a few things you have to keep in mind:
• Occupancy: It is nothing but the number of occupied rooms at a given time, compared to the total number of rooms available in the hotel at that time.
  Occupancy = Total No. Of Rooms Sold / Total No. Of Available
• Hotel ARR: It is a KPI that measures the average rate per available room ARR = Total Room Revenue / Total Room Occupied
• Rooms Sold on OTA: It is the total number of rooms sold through online travel agents.
• Rooms Sold on WBE: It is the total number of rooms sold through your web booking engine.

Benefits Of Hotelogix ROI Calculator

It gives you an instant insight on — in terms of Total Revenue, ARR, Occupancy, and Online ARR
You can plan better to improve your bottom line
Remove chances of error since no guesswork involved