Which of the following metrics is used to analyze room performance?

Average Daily Rate (ADR) is a critical metric used to analyze room performance in the hotel industry. It represents the average revenue generated per rented room, calculated by dividing the total room revenue by the number of rooms sold. By focusing on ADR, hotel management can assess pricing strategies and market positioning, allowing them to optimize revenue from room sales.

This metric is essential because it directly relates to how well a hotel is performing in its room sales, taking into account both occupancy and pricing. A higher ADR indicates that the hotel is effectively maximizing its room rates, which can lead to increased profitability if complemented with appropriate occupancy levels.

Understanding ADR is also crucial for benchmarking against competitors, as it helps hotels evaluate their pricing strategy relative to the market. This allows for informed decisions regarding promotions, discounts, and other strategies aimed at improving revenue and occupancy rates in the competitive hospitality marketplace.

Other metrics such as Gross Operating Profit (GOP), customer satisfaction scores, and employee turnover rates, while valuable in their own contexts, do not specifically analyze room performance. GOP relates to the overall profitability of the hotel rather than just room revenue, customer satisfaction scores assess guest experience, and employee turnover rates focus on staff retention rather than the financial performance of room sales.