From ADR and RevPAR to F&B and MICE — master every essential abbreviation used in hotels, resorts, and restaurants.
In three decades of hotel operations across India, the Middle East and the United States, I've seen too many properties fixate on one metric while ignoring the others. A hotel can have a great ADR and still bleed profit. It can have a high RevPAR and still miss the full picture of what's happening across the property. The real discipline is knowing which number to look at, when, and how they all fit together.
This guide is your definitive reference — covering not only the key performance metrics (ADR, RevPAR, GOPPAR, etc.) but also every other abbreviation you'll encounter in daily hotel and restaurant operations. Whether you're a hotelier, revenue manager, chef, or front-desk associate, this is the one resource you need to decode the alphabet soup of hospitality.
These five metrics form the foundation of hotel performance measurement. Each one answers a different question about your business — from pricing power to operational efficiency.
| Metric | Full Form | Definition | Formula | Why It Matters |
|---|---|---|---|---|
| ADR | Average Daily Rate | The average rate obtained for occupied rooms. | Total Room Revenue ÷ Rooms Sold | Indicates pricing performance and revenue potential. |
| Occupancy % | Occupancy Percentage | The percentage of rooms sold out of rooms available. | Rooms Sold ÷ Rooms Available × 100 | Shows how well the hotel is filling its available inventory. |
| RevPAR | Revenue Per Available Room | The revenue generated per available room. | Total Room Revenue ÷ Rooms Available | Combines occupancy and rate to measure overall room revenue performance. |
| GOPPAR | Gross Operating Profit Per Available Room | The gross operating profit generated per available room. | Gross Operating Profit ÷ Rooms Available | Shows profitability efficiency of operations. |
| TREVPAR | Total Revenue Per Available Room | Total revenue generated from all departments per available room. | Total Revenue ÷ Rooms Available | Measures total revenue productivity across all departments. |
Each metric serves a specific purpose. ADR tells you about your pricing power. Occupancy tells you about demand. RevPAR tells you about room revenue efficiency. GOPPAR tells you about profit. And TREVPAR tells you about total revenue productivity across the entire property.
These metrics don't exist in isolation. They flow into each other in a clear sequence, and understanding that sequence is the key to diagnosing performance and taking action.
Let's walk through a full example using a 100-room hotel over a 30-day period (3,000 room nights available). This is the kind of calculation I run with every property I work with — it's simple arithmetic, but it reveals where the profit really sits.
Using the formulas from the table above, here's how each metric is calculated from the example data:
Notice that RevPAR (₹38.57) is not the same as ADR (₹55.10). The difference is occupancy. If this property could increase occupancy from 70% to 80% without dropping ADR, RevPAR would jump to ₹44.08 — a 14% improvement. That's the leverage point.
In day-to-day hotel operations, these metrics serve different purposes at different levels of the organization:
Beyond the key performance metrics, here is the full alphabet soup of abbreviations used in hotels, resorts, and restaurants — categorised for quick reference.
| Abbreviation | Meaning | Description |
|---|---|---|
| ADR | Average Daily Rate | Average revenue earned per occupied room. Calculated by dividing total room revenue by the number of rooms sold. |
| RevPAR | Revenue Per Available Room | Total room revenue divided by all available rooms (both sold and unsold). Measures how well a hotel fills rooms while maintaining rates. |
| OCC | Occupancy Rate | The percentage of available rooms that are occupied during a set period. |
| GOP | Gross Operating Profit | The profit left after deducting operating expenses from total revenue. |
| GOPPAR | Gross Operating Profit Per Available Room | GOP divided by total available rooms. A key metric for overall property profitability. |
| CPOR | Cost Per Occupied Room | The direct cost associated with each room that is sold. |
| AR | Accounts Receivable | Money owed to the business by guests, companies, or travel agents. |
| BEP | Break-even Point | The point at which total revenue equals total costs. |
| Average Check | — | The average amount spent by a dining customer. |
| Beverage Cost % | Beverage Cost Percentage | Cost of beverages sold divided by beverage sales, used to control pricing and waste. |
| Abbreviation | Meaning | Description |
|---|---|---|
| FOH | Front of House | Guest-facing areas and staff, like reception, concierge, and the lobby. |
| BOH | Back of House | Non-guest areas where operations happen, including kitchens, storage, and staff offices. |
| PMS | Property Management System | The central software that handles reservations, guest accounts, check-ins/outs, and reporting. |
| CRS | Central Reservation System | A system used by hotel groups to manage bookings across multiple properties from one platform. |
| OTA | Online Travel Agency | Third-party booking platforms like Booking.com or Expedia. |
| GDS | Global Distribution System | A network that connects hotels with travel agencies worldwide for booking. |
| POS | Point of Sale | The system used to process payments and orders, especially in restaurants and bars. |
| BAR | Best Available Rate | The lowest unrestricted room rate offered to the public at the time of booking. |
| LRA | Last Room Availability | A rate agreement that allows a partner to book the last available room at a set rate. |
| LOS / ALOS | Length of Stay / Average Length of Stay | The number of nights a guest stays (LOS) or the average across all guests (ALOS). |
| MLOS | Minimum Length of Stay | A restriction requiring a guest to book for a minimum number of nights. |
| CTA / CTD | Closed to Arrival / Closed to Departure | Restrictions preventing new check-ins (CTA) or check-outs (CTD) on specific dates. |
| FIT | Free Independent Traveler | A guest who books travel independently, not as part of a tour group. |
| MICE | Meetings, Incentives, Conventions, and Exhibitions | A key segment of group business for hotels. |
| DND | Do Not Disturb | A guest preference for privacy. |
| OOO / OOS | Out of Order / Out of Service | A room that is unavailable, either for maintenance (OOO) or temporarily blocked (OOS). |
| VIP | Very Important Person | A guest who receives special treatment and amenities. |
| MUR | Make-Up Room | A request to have a room cleaned and prepared for a new or returning guest. |
| CO | Check-Out | The process of a guest leaving and settling their bill. |
| ETA / ETD | Estimated Time of Arrival / Departure | The expected arrival or departure time of a guest. |
| Abbreviation | Meaning | Description |
|---|---|---|
| F&B | Food and Beverage | The department responsible for all food and drink services. |
| BEO | Banquet Event Order | A master document detailing all logistics for a catered event (menu, timeline, setup). |
| HACCP | Hazard Analysis and Critical Control Points | A food safety system that identifies and prevents hazards in food production. |
| FIFO | First In, First Out | An inventory management method where the oldest stock is used first to ensure freshness. |
| SOP | Standard Operating Procedure | A set of step-by-step instructions to perform a routine operation. |
| RTE | Ready to Eat | Food that is safe to consume without further cooking or preparation. |
| 86 | "Eighty-six" | A kitchen term meaning an item is no longer available or to remove it from a dish. |
| BTG | By the Glass | A term used for wines or other beverages sold by the glass. |
| ABV | Alcohol by Volume | The standard measure of how much alcohol is in a beverage. |
| Expo | Expediter | The person in the kitchen who coordinates orders and ensures they go out to the dining room correctly. |
| CIP | Clean-in-Place | A method of cleaning the interior of pipes and equipment without disassembly. |
| Abbreviation | Meaning | Description |
|---|---|---|
| GM | General Manager | The top executive responsible for the entire property. |
| FOM | Front Office Manager | The manager in charge of the front desk and guest services. |
| DOFB | Director of Food & Beverage | The head of all F&B operations. |
| DOS / DOSM | Director of Sales / Director of Sales and Marketing | The executive responsible for driving revenue through sales and marketing efforts. |
| MOD | Manager on Duty | The manager responsible for the property during a specific shift. |
| HOD | Head of Department | The manager in charge of any specific department (e.g., Housekeeping, Engineering). |
| AEH / AH | Assistant Executive Housekeeper / Assistant Housekeeper | Managers who support the Executive Housekeeper in managing the housekeeping team. |
| GRA | Guest Room Attendant | The staff member responsible for cleaning guest rooms. |
| Abbreviation | Meaning | Description |
|---|---|---|
| API | Application Programming Interface | Technology that allows different software systems (like PMS and CRS) to connect and share data. |
| CM | Channel Manager | A tool that updates room rates and availability across all OTAs simultaneously. |
| IBE | Internet Booking Engine | The online reservation interface on a hotel's own website. |
| DMO | Destination Marketing Organization | An entity that promotes a specific location to travelers. |
| DMC | Destination Management Company | A company that provides professional event and tour management services in a specific location. |
| FAM Trip | Familiarization Trip | A visit arranged for travel agents or media to experience the property and promote it. |
| B2B / B2C | Business-to-Business / Business-to-Consumer | Sales to other businesses (B2B) vs. direct sales to individual guests (B2C). |
| Abbreviation | Meaning | Description |
|---|---|---|
| AI | All-Inclusive | A pricing model where the room rate includes meals, drinks, and activities. |
| HB / FB | Half Board / Full Board | Meal plans that include breakfast and dinner (HB) or breakfast, lunch, and dinner (FB). |
| SUR | Spa Utilization Ratio | A metric used to track the usage and profitability of the spa. |
| Abbreviation | Meaning | Description |
|---|---|---|
| EO | Executive Office | The administrative office of the hotel's top management. |
| FIC | Finance Department | The department managing the property's finances. |
| ACCT | Accounting | The sub-department handling accounts, payroll, and financial records. |
| S&M | Sales & Marketing | The department responsible for generating revenue through sales and promotional activities. |
| HSKP | Housekeeping | The department responsible for cleaning and maintaining the property. |
| LR | Laundry Room | The area where linens and guest laundry are cleaned. |
| ENG | Engineering | The department responsible for maintenance and repairs. |
| SEC | Security | The department responsible for the safety and security of the property and guests. |
| HR | Human Resources | The department managing employee relations, hiring, and training. |
| CON | Concierge | The department that assists guests with services like restaurant reservations, tours, and information. |
| BC | Business Centre | A facility offering office services like printing, copying, and internet access to guests. |
| Abbreviation | Meaning | Description |
|---|---|---|
| APP | Appetizer | A small dish served before the main course. |
| ENT | Entrée / Main Course | The main dish of a meal. |
| DES | Dessert | The sweet course served at the end of a meal. |
| Cvr / Pax | Cover / Persons | A term for a single diner (e.g., "a table for 4 pax"). |
| OT | Order Ticket | The printed or digital order that the kitchen uses to prepare a dish. |
Understanding this "alphabet soup" is crucial for several reasons:
These five metrics — ADR, Occupancy, RevPAR, GOPPAR and TREVPAR — form the backbone of hotel performance measurement. None of them is perfect on its own. Together, they tell a complete story about pricing, demand, revenue efficiency, profitability and total productivity.
The properties that consistently outperform their comp set aren't the ones that obsess over a single number. They're the ones that understand how the numbers fit together, track them weekly (not just monthly), and act on what they reveal — adjusting pricing, managing costs, and optimizing the mix across departments.
If you're looking to tighten your hotel's financial performance — whether it's a single property or a portfolio — I work with owners, GMs and finance teams on operational audits, revenue diagnostics and profit improvement. Reach out through the contact page, or connect with me on LinkedIn.