RevPAR alone is not enough—because it does not show the hotel's efficiency for its survival. The same RevPAR can exist in two different hotels with a different number of rooms and different occupancy rates.

I developed this formula several years ago, applying it internally in the analyses I conduct for the hotels I advise through SN Hotelaria Consultoria Especializada. It did not originate from an academic study, nor from a revenue management conference — it emerged from an uncomfortable pattern I observed repeatedly, property after property: a record RevPAR celebrated in the same quarter in which the hotel's Google rating was declining, with no one on the management connecting