Short, practical explanations of the measures that matter to ownership — with a formula and a worked example for each. Free to save and share with your team.
Every hotel result is the same three circles: revenue, cost of sales and operating expenses.
Revenue comes from rooms, food and beverage, events and other services. Cost of sales follows each riyal earned, and operating expenses — payroll, energy, maintenance, distribution and fees — decide how much reaches profit. Reading the three together is the start of every owner conversation.
All figures are illustrative. Click any card image to open it full size.
RevPAR shows how well the rooms sell, TRevPAR how productive the whole hotel is, and GOPPAR how much of it becomes profit. Each is useful; none is complete on its own.
90% occupancy at SAR 400 and 72% at SAR 500 both give SAR 360 RevPAR. The second hotel sells 18 fewer rooms per 100 — less housekeeping, laundry, amenities and wear. RevPAR does not tell you which mix is more profitable.
Revenue up SAR 1.0m with GOP up SAR 450K is a 45% flow-through. When revenue rises it shows how much growth is kept; when it falls, how well costs were adjusted.
100 is fair share. An MPI of 104 with an ARI of 94 gives an RGI of about 98 — the hotel is winning volume but giving away rate.
SAR 3.6m of rooms cost over 60,000 occupied rooms is SAR 60 a room. In peak season — Ramadan and Hajj in Makkah and Madinah — cost as a percentage can look healthy while the cost per room quietly rises.
A hotel with RevPAR of SAR 340 and low channel costs can keep more per room than one at SAR 360 with heavy commissions. Distribution cost belongs in every revenue review.
SAR 12.0m GOP on SAR 40.0m revenue is 30%; SAR 11.2m on SAR 32.0m is 35%. The amount pays the bills; the margin shows the discipline.
A healthy 32% food cost can still sit beside a thin departmental result if payroll is heavy. Review cost of sales, payroll and departmental profit as one line.
SAR 11.5m GOP becomes SAR 8.5m EBITDA after management fees and fixed charges, and SAR 7.06m after a 4% FF&E reserve — the fairer view of long-term value. Terms follow USALI.
SAR 3.20m of revenue is 5.9% below a SAR 3.40m budget and 6.7% above last year's SAR 3.00m. Was the budget right, or is the market moving faster than the hotel?
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