5 essential KPIs to manage short-term rentals profitably
Occupancy, ADR, RevPAR, GOPPAR and NetPAR: the five indicators every property manager should track weekly to really understand how the business is performing.
Managing a hospitality property without looking at the right KPIs is like driving with a foggy windshield: you’re moving, but you don’t know where you’re going. In this article we look at the five essential indicators every property manager should track — and why stopping at occupancy is a costly mistake.
1. Occupancy Rate
Occupancy rate measures the percentage of nights actually sold over total available nights.
Occupancy = (Nights sold / Nights available) × 100
It’s the best-known KPI, but on its own it says nothing about profitability. A 90% occupancy achieved by selling at €40/night is worse than 70% at €95.
2. ADR (Average Daily Rate)
ADR is the average selling price per night sold.
ADR = Room revenue / Nights sold
It signals whether your pricing policy is competitive. A falling ADR with stable occupancy means you’re leaving money on the table.
3. RevPAR (Revenue Per Available Room)
RevPAR combines the first two: revenue per available room.
RevPAR = ADR × Occupancy
It’s the hospitality industry standard for comparing performance over time or across properties. But RevPAR still has a limit: it ignores costs.
4. GOPPAR (Gross Operating Profit Per Available Room)
GOPPAR is RevPAR minus variable operating costs (cleaning, laundry, OTA commissions, variable utilities).
GOPPAR = (Revenue − Operating costs) / Available rooms
It’s the first KPI that truly measures operating profitability. Two units with the same RevPAR can have GOPPAR figures hundreds of euros apart per month.
5. NetPAR (Net Profit Per Available Room)
NetPAR — the KPI Edoras brings into the hospitality world — extends GOPPAR by including all costs allocated to the unit: rent, insurance, maintenance, fixed cost shares distributed scientifically.
NetPAR = (Revenue − Total allocated costs) / Available rooms
It’s the only metric that answers the question that matters: “Is this apartment making me money or losing it?”
Why you need to see them together
Looking at a single KPI is misleading. The combination of Occupancy + ADR + NetPAR per unit reveals things the year-end P&L hides:
- Units with high occupancy but negative NetPAR (underpriced + high fixed costs)
- Units with low occupancy but very high NetPAR (premium niche, low but lucrative)
- Real seasonality of each asset
The next step
If you calculate these KPIs by hand on Excel, you lose 20+ hours a month and errors are unavoidable. Edoras computes them automatically for every unit, updated daily, with scientific cost allocation.
Request a demo to see how they look on your real data.