CHIA cheat sheet

Occupancy = rooms sold ÷ rooms available; available rooms = total rooms minus out-of-order rooms for the same date range.

ADR = rooms revenue ÷ rooms sold; use paid rooms and room revenue only so complimentary rooms do not distort rate.

RevPAR = rooms revenue ÷ rooms available = occupancy × ADR; it combines price and volume into one room-revenue metric.

TRevPAR = total revenue ÷ rooms available; it captures rooms, food and beverage, and other revenue per available room.

GOPPAR = gross operating profit ÷ rooms available; it measures operating profit after departmental and undistributed expenses.

Available room nights = number of rooms × number of days minus out-of-order room nights.

Occupancy index = subject occupancy ÷ comp-set occupancy × 100; above 100 means the hotel captured more than its fair occupancy share.

RevPAR index = subject RevPAR ÷ comp-set RevPAR × 100; it equals occupancy index × ADR index ÷ 100.

A booking curve plots cumulative reservations on hand against lead time; a curve above last year's at the same lead time indicates positive pace.

Pickup = new reservations minus cancellations and no-shows since the prior forecast date; net pickup updates the demand forecast.

Price elasticity = percentage change in quantity demanded ÷ percentage change in price; absolute values below 1 are inelastic and above 1 are elastic.

Displacement decision rule: accept a group only if its total contribution exceeds the contribution from transient demand it displaces plus incremental costs.

Hurdle rate = displaced room contribution per room plus marginal cost per room; rates below the hurdle reduce total contribution.

Overbooking is set by balancing expected revenue from filling rooms against expected walk costs, using historical no-show and cancellation rates.

Net ADR = gross ADR minus distribution cost per occupied room; compare channel profitability using net ADR, not gross rate.

Minimum length of stay requires a stay to span a set number of nights; use it to reduce orphan nights and protect compression dates.

Departmental profit = departmental revenue minus cost of sales, labor, and other departmental expenses; it is before undistributed operating expenses.

GOP = total revenue minus departmental expenses and undistributed operating expenses; management fees, fixed charges, rent, depreciation, and interest come below GOP.

Hotel EBITDA = GOP minus management fees, fixed charges, and rent; it is before depreciation, interest, and income taxes.

Budget variance = actual minus budget; revenue above budget is favorable, and expense above budget is unfavorable.

Flow-through = change in GOP ÷ change in revenue; it measures the share of incremental revenue converted into gross operating profit.

Breakeven occupancy = fixed costs ÷ [rooms available × (ADR minus variable cost per occupied room)].

Cost per occupied room = cost category ÷ occupied rooms; use it to compare variable cost efficiency across periods.

DSCR = net operating income ÷ annual debt service; a ratio below the lender's covenant signals insufficient cash to cover principal and interest.

Competitive set: hotels that compete for the same demand; keep membership stable and representative so index comparisons are meaningful.

Occupancy index (MPI) = subject occupancy ÷ comp-set occupancy × 100; 100 = parity, above 100 = above-market occupancy penetration.

ADR index (ARI) = subject ADR ÷ comp-set ADR × 100; 100 = parity, above 100 = rate premium versus the comp set.

RevPAR index (RGI) = subject RevPAR ÷ comp-set RevPAR × 100; it also equals MPI × ARI ÷ 100.

Fair share = subject rooms ÷ comp-set rooms; actual share ÷ fair share above 1 means the hotel captures more than its room-count share.

Percent change = (current minus base) ÷ base × 100; index = current ÷ base × 100; keep base and period definitions consistent.

RevPAR variance = rate effect + occupancy effect + interaction; decompose variance to separate price, volume, and mix effects.

Data quality check: confirm same date range, currency, inventory treatment, and inclusion or exclusion of out-of-order and complimentary rooms before benchmarking.