How to Use a Hotel ROI Calculator to Forecast Your Growth

“If I invest X, how much will I get back?”

This is the most important question in business. Yet, many hoteliers make decisions based on gut feeling rather than hard data.

We built our Hotel ROI Calculator to solve this. It’s a simple tool that shows you the potential financial impact of improving your online reputation.

Here is a step-by-step guide on how to use it—and what the numbers actually mean.

Step 1: Gather Your Data

Before you start, you’ll need three numbers:

1. Number of Rooms: The total inventory of your hotel.
2. Average Occupancy Rate (%): Your average occupancy over the last 12 months (e.g., 75%).
3. Average Daily Rate (ADR): The average price of a room (e.g., $150).

Step 2: Input Your Numbers

Go to the Review Agent ROI Calculator.

Enter your data into the fields. The calculator uses the Cornell University study model to predict how a 1-point increase in your review score would impact your revenue.

Step 3: Interpret the Results

The calculator will output two key figures:

1. Potential Annual Revenue Increase

This is the “big number.” It shows how much extra revenue you could generate per year if you improved your reputation score. * Example: A 100-room hotel with 75% occupancy and $150 ADR could see an extra $150,000+ per year.

2. The “Cost of Inaction”

This is the money you are leaving on the table every single day that your reputation remains stagnant.

Why This Matters

Seeing these numbers in black and white changes your perspective.

Suddenly, investing in a reputation management tool isn’t an “expense”—it’s a no-brainer investment. If a tool costs $100/month but unlocks $10,000/month in revenue, the ROI is massive.

Next Steps

Don’t just look at the numbers—act on them.

To achieve that 1-point increase, you need to: 1. Get more reviews. 2. Respond to every review. 3. Fix the issues guests complain about.

Ready to crunch the numbers? Launch the Hotel ROI Calculator now.