I have acquired Excel financial spreadsheets from two hotels in my area. I will not share the actual data columns to uphold the privacy of these businesses. 

In order to analyze and see trends, I graphed some important factors over a set period of time. 

Revnue Excel Graph.png

Since these two hotels are in the same area, it can be seen that their revenue stream is affected by the time of year. There are low and high seasons.

Revenue Y excel Graph.png
OCC rate excel graph.png
Rate Y excel graph.png

Hotel Y has more days where their occupancy is over 95%, which may lead people to think their occupancy is generally higher. However, when you crunch the numbers, Hotel X has a mean of 74% and a standard deviation of 19%, while Hotel Y's mean is 63% with a standard deviation of 21%. Meaning, Hotel X has a higher, more stable occupancy rate overall. 

ADR excel graph.png

I put the Average Daily Rate for each hotel on the same graph to compare how they price rooms. ADR is the only metric I've shown that the hotels can directly control. You can see that both hotels capitalize on their revenue by increasing their rates during the busy season. But what sets them apart is what they do during the slow seasons. 

RevPar stands for revenue per available room. I calculated it by multiplying the ADR by the occupancy rate. It's a great metric to show the overall success of a past duration.

My conclusion is Hotel Y did better than Hotel X for this particular 9 month period in terms of revenue and, as I would assume, also profit. However, just from creating and analyzing some graphs, I can see that Hotel Y tries to compensate in the slow season by lowering their ADR. This tactic increases occupancy but revenue stays relatively low. That's why Hotel X, a much smaller hotel, has a higher RevPar in the slower seasons. 

RevPar Excel Graph.png