What metric would be most useful to determine the economic efficiency of a hotel's operations?

Revenue per available room (RevPAR) is a key metric for evaluating the economic efficiency of a hotel's operations because it incorporates both occupancy rates and room rates, reflecting how well a hotel is generating revenue from its available rooms. This metric provides a clear understanding of a hotel's ability to maximize revenue relative to the number of rooms it has, taking into account both the revenue earned and the available inventory.

By using RevPAR, hotel operators can assess performance over time, compare against competitors, and make informed decisions to improve operational efficiency. It directly ties financial performance to the operational aspects of the hotel, giving an overarching view of how effectively the hotel is using its resources to generate income.

Other metrics like guest satisfaction surveys give insight into the customer experience but do not directly correlate with financial performance. Total revenue generated offers a snapshot of earnings but lacks context on room availability and occupancy, which are essential for understanding operational efficiency. The number of staff employed may provide information about operational capacity but does not indicate how efficiently that capacity is being utilized in generating revenue. Thus, RevPAR stands out as the most comprehensive measure of economic efficiency in hotel operations.