Simple Metrics for Small Hotels

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Measure What Matters

Running a hotel—whether a bed-and-breakfast, a boutique property, or a cozy inn—means juggling a lot. For many years, success was measured by how many rooms you booked. But the truth is, hospitality today is about more than filling beds. It’s about making every part of your space work for you, whether it’s the guest rooms, dining areas, or even the lobby.

Here’s a breakdown of a few easy-to-understand metrics that can give you a clearer picture of how well your hotel is doing and where there’s room to grow.

Occupancy vs. Utilization: Are Your Spaces Pulling Their Weight?

Occupancy:

Measures how many rooms are booked overnight.

Utilization:

Look beyond occupancy to see how often your spaces—like rooms, lobbies, or common areas—are used.

Example:

Say your guests usually check out by 10 a.m.; the next ones don’t arrive until 4 p.m. Those six hours are wasted space. Now imagine you offer guests a late check-out option or allow early check-ins for a small fee. Suddenly, those hours become an opportunity to bring in more revenue. You can also make the lobby work harder by offering it as a quiet space for locals to use as a coffee shop or co-working area during the day.

RevPAM vs. RevPAR: Don’t Just Focus on Rooms

RevPAR (Revenue Per Available Room):

Measures only room revenue, giving you a limited view.

RevPAM (Revenue Per Available Meter):

Looks at how much revenue your entire property generates—whether that’s from room bookings, meals, drinks, or events.

Example:

Maybe your restaurant is only open for breakfast and sits empty the rest of the day. Instead of letting that space go to waste, consider offering a lunch menu to local workers or turning the area into a pop-up wine-tasting event. These little ideas make every meter of your hotel count—and that’s what RevPAM tracks.

Daily Guest Spend vs. ADR: See the Big Picture of Guest Spending

ADR (Average Daily Rate):

Tells you how much a guest pays for their room each night.

Daily Guest Spend:

Includes everything guests spend during their stay—on meals, drinks, parking, or souvenirs.

Example:

A guest might book a room for $150 a night, but they also order dinner, grab a few drinks, and rent a bike from you. The room rate alone doesn’t tell the whole story. Tracking the total amount each guest spends can give you better ideas for boosting revenue. Maybe you’ll offer a package deal that includes dinner and bike rental, increasing income and guest satisfaction.

Guest Acquisition Cost (GAC): What It Really Costs to Get Guests in the Door

What It Is:

How much do you spend to get a new guest, including fees to online travel agencies (OTAs) or marketing costs?

Why It Matters:

If it’s too expensive to attract guests, your profits shrink.

Example:

If you pay a 15% commission for every booking through an OTA, you could save money with more direct bookings. Consider offering incentives, like a discount or free breakfast, to encourage guests to book directly through your website. A few tweaks can add up to big savings over time.

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Average Length of Stay: Longer Stays Mean Better Business

• Why It Matters: The longer guests stay, the less work it takes to manage check-ins and check-outs—and the more chances you have to upsell them on meals or activities.

Example:

Look for trends in guest stays. Are weekend stays more popular? You can offer a discount for guests who book three nights instead of two. Or, if you have a coworking space, offer a package that includes an extended stay and workspace access to appeal to digital nomads.

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Happiness Scale

NPS: Know How Happy Your Guests Are

What It Is:

NPS (Net Promoter Score) measures how likely guests are to recommend your hotel. It’s simple: ask them to rate their stay on a scale of 1-10.

How It Works:

Guests who give you a 9 or 10 are “promoters.” Those who score you 0-6 are “detractors.” Subtract the percentage of detractors from promoters to find your NPS.

Example:

If your guests seem happy, but your NPS score is low, it’s a sign that something’s not quite right. Maybe the rooms are great, but the check-in process is slow. Small changes, like offering mobile check-in or a welcome drink, can quickly turn things around.

Staff Turnover Rate: Keep Your Team Happy, Keep Guests Happy

What It Is:

The percentage of employees who leave your business within a certain period.

Why It Matters:

High turnover is expensive. Every time someone leaves, you spend money hiring and training their replacement.

Example:

Take care of your team, and they’ll take care of your guests. Simple things like offering flexible schedules or small perks can go a long way toward keeping employees happy—and happy employees stick around. Fewer staff changes mean a smoother experience for your guests.

eNPS: Staff Happiness Matters, Too

What It Is:

Just like NPS for guests, eNPS measures how likely your employees are to recommend working at your hotel.

Example:

If your eNPS is low, consider ways to lighten the load. Automating repetitive tasks—like using software to handle check-ins—can free up your team to focus on the guests, making their jobs more enjoyable and engaging.

Final Thoughts

Running a hotel, lodge or inn is more than just managing rooms—it’s about creating great experiences for your guests and making every part of your property work for you. Metrics like RevPAM, daily guest spend, and NPS give you deeper insights than traditional numbers like occupancy and ADR.

When you focus on the right things, you’ll see new opportunities to boost revenue, improve guest satisfaction, and make your hotel the place people love to visit—and return to.

Running a Small Hotel Isn’t Easy

There’s always something to manage, and hiring extra help isn’t always an option. That’s where the Smart Pineapple community comes in.

You don’t have to do this alone. Connect with others who understand your challenges and share ideas that work. Our community is a place to learn, grow, and find support from people just like you.

Along the way, you’ll also get access to practical courses designed to simplify your work. With AI tools, you’ll manage reviews, social media, and day-to-day tasks faster—freeing up more time for your guests. And no, you don’t need to be a tech expert—we’ll walk you through it step by step.

Join us

Connect with others, and turn challenges into opportunities. Together, we’ll help your business thrive.

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