{"id":3755,"date":"2020-05-26T14:34:15","date_gmt":"2020-05-26T14:34:15","guid":{"rendered":"https:\/\/sloane.co.uk\/news\/management-accounting\/my-key-kpi-adr-and-revpar\/"},"modified":"2020-06-10T15:03:11","modified_gmt":"2020-06-10T15:03:11","slug":"my-key-kpi-adr-and-revpar","status":"publish","type":"post","link":"https:\/\/sloane.co.uk\/news\/management-accounting\/management-accounting-management-accounting\/my-key-kpi-adr-and-revpar\/","title":{"rendered":"My key KPI: ADR and RevPAR"},"content":{"rendered":"

My key KPI: ADR and RevPAR<\/p>\n<\/p>\n

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My key KPI is a recurring content series where we ask CFOs and FDs what metrics and measures they use to drive their businesses forward.<\/strong><\/h2>\n

The aim is to understand how different finance professionals across a broad array of industries and sectors use data to inform their decision making.<\/p>\n

In the latest edition of the series, AccountingWEB catches up with Colin Moore, the group FC of the Galgorm Collection, a luxury hospitality group.<\/p>\n

***<\/p>\n

The Galgorm Collection, a luxury resort and spa group, recently made the leap from Sage 50 to Sage X3, Sage\u2019s ERP product for established businesses.<\/p>\n

The reason, explained Colin Moore, group financial controller, was that the hospitality chain — which includes an hotel, two restaurants and another hotel in the offing — had outgrown Sage\u2019s bread-and-butter product.<\/p>\n

As Galgorm multi-company structure ran up against the boundaries of what\u2019s possible in Sage 50, Moore\u2019s reporting capacity was slowed down. With X3, specifically tailored to the business by the software consultancy Percipient<\/a>, the process has been sped up significantly.<\/p>\n

It\u2019s not quite perfect, though. \u201cThere are a number of metrics we tie into our reports, but it’s not completely seamless yet. The ideal scenario would be that our hotel booking system would import key metrics into Sage X3 such as rooms available and rooms occupied.<\/p>\n

\u201cThis would then allow us to calculate key hospitality metrics such as room occupancy and Average Daily Rate (ADR) automatically within Sage X3.\u201d<\/p>\n

ADR, or average daily room rate, is a KPI that\u2019s frequently used in hospitality, explained Moore. It is calculated through a simple formula of total room revenue\/total number of rooms sold.\u00a0<\/p>\n

The measure is not meant to be a standalone metric, however. By multiplying a hotel\u2019s ADR by its occupancy rate, it\u2019s possible to arrive at revenue per available room (RevPAR). This measure, Moore said, is an excellent means of assessing the hotel\u2019s performance.<\/p>\n

If a room is a \u00a3100-per-night and occupancy is 90%, then the RevPAR is \u00a390 (\u00a3100 x 90% occupancy rate). RevPAR lets hotel managers assess not only performance but the pricing of the rooms. So with a \u00a3100-per-night price and a RevPAR of \u00a390, a hotel can lower its price to get to full capacity.<\/p>\n

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My key KPI: ADR and RevPAR My key KPI is a recurring content series where we ask CFOs and FDs what metrics and measures they use to drive their businesses forward. The aim is to understand how different finance professionals across a broad array of industries and sectors use data to inform their decision making. In the latest edition of […]<\/p>\n","protected":false},"author":2,"featured_media":5730,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[25],"tags":[],"_links":{"self":[{"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/posts\/3755"}],"collection":[{"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/comments?post=3755"}],"version-history":[{"count":0,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/posts\/3755\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/media\/5730"}],"wp:attachment":[{"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/media?parent=3755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/categories?post=3755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/tags?post=3755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}