What does the Average Nightly Hurdle Revenue represent?

The Average Nightly Hurdle Revenue represents the average rate necessary to achieve the hurdle revenue target. This figure helps hotels and property managers evaluate their pricing strategy against performance metrics. By understanding this average rate, they can set competitive room rates that not only attract guests but also ensure that revenue goals are met or exceeded.

The average nightly hurdle revenue serves as a benchmark, indicating the minimum revenue that must be achieved for each booked night to stay profitable. It considers expectations of occupancy and revenue management principles. Thus, it effectively allows operators to gauge whether their pricing is aligned with their desired financial outcomes.