Question about Performance Indicators in the Hotel/Motel Industry

[David Cook]

I'm a real estate investor, but this question is actually related to another business I'm in.  We sell a green pest control product that, among other things, kills bed bugs.  Since it's non-toxic there is no restriction on the time between the treatment and reentry for staff or guests, the treatment itself is also fast compared to other treatment methods.  I want to create a website or app with form fills and a calculator that allows my pest control customers to show the financial impact of using their service vs. a competitor using alternative methods.  Is there a standard metric that measures lost revenue due to a room being down for maintenance?  I feel like there should be, but I can't seem to find one on Google.  

From what I have found I would think it might be something like:

Average TrevPOR x Overbookings that took place while a room could not be occupied due to a pest control treatment.

Any feedback or input would be greatly appreciated.  Thanks!

[Ravi P.]

The essential  KPI is RevPAR, it can be calculatedby the following formula.

Average Daily Rate (ADR)

x Occupancy (Occ)

= Revenue Per Available Room (RevPAR)

ADR x Occ = RevPAR

As you can see RevPAR take the average the property earns per total rooms and the occupancy which takes into the number of rooms that are filled. 

 But from a sales perspective you may be better emphasizing the ADR because that number is higher it would reflect the loss revenue by not renting the room out. By not renting a room out it would reduce the RevPAR since the Occ would be lower.  You should also factor in the cost of the service. These peat control companies charge anywhere from $250 -$750 per room being remediated. If the do it in house they can the can pay their in house maintenance guy 15.00-25.00/hour. That is where the true savings are.