Hotel Jargon: The Essential Hotel Abbreviations Dictionary

Hotel managers handle a packed schedule every day. They check revenue numbers, talk to front desk teams, work with online booking sites, and fix unexpected problems. In this busy setting, clear and quick communication is key to getting things done right. But the hotel business uses lots of shortcuts and special words that can trip up even experienced managers if they’re not careful. A small mistake with a term like GOPPAR or misunderstanding an OTB number can lead to bad pricing choices, empty rooms, or unhappy guests.

This guide isn’t just another boring list of hotel words. It’s a useful handbook made for managers. It turns confusing shortcuts into clear ideas you can actually use. Whether you’re new to running a hotel or have done it for years, you’ll find simple explanations, real-life examples, and tips. These will help you and your team work smoother, make more money, and steer clear of expensive errors. Let’s get started.

Revenue & Finance: The Numbers That Drive Decisions

For hotel managers, revenue and finance data aren’t just spreadsheets—they’re roadmaps for setting prices, controlling costs, and hitting business goals. These abbreviations are the foundation of every financial conversation you’ll have, and understanding them is key to making data-driven choices.

Abbreviation	Full Name	Simple Definition	Managerial Application
ADR	Average Daily Rate	Total room revenue divided by the number of rooms sold over a specific period (e.g., a day, week).	Use to measure how much guests pay for rooms. If ADR is lower than competitors but occupancy is high, consider adjusting pricing upward. If ADR is high but occupancy is low, test targeted discounts to fill more rooms without slashing overall rates.
RevPAR	Revenue per Available Room	ADR multiplied by occupancy rate (accounts for all available rooms, not just sold ones).	Track weekly or monthly to spot efficiency gaps. For example, if RevPAR drops, check if occupancy fell (needing a booking push) or ADR slipped (requiring price tweaks). Compare to past periods to measure growth.
GOPPAR	Gross Operating Profit per Available Room	Gross operating profit (total revenue minus operating costs like labor, utilities) divided by the number of available rooms.	Use to balance revenue and costs. If RevPAR is high but GOPPAR is low, look for ways to cut waste—like adjusting staff schedules during slow hours or renegotiating linen supplier contracts.
YTD	Year To Date	All data from the start of the calendar year up to the current date (e.g., YTD RevPAR, YTD profit).	Stay on track with annual goals. If it’s July (halfway through the year) and YTD revenue is only 40% of the target, launch a summer promotion or partner with local events to drive bookings. Compare to the previous year to spot trends.
EBITDAR	Earnings Before Interest, Taxes, Depreciation, Amortization, & Rent	Profit before deducting large, non-operational costs (e.g., loan interest, building depreciation).	Evaluate core business health, especially for leased properties or chains. If EBITDAR is strong but net profit is low, the issue may lie in high rent or loan payments—negotiate terms or refinance if possible.

Reservations & Distribution: Getting Guests in the Door

Even the best hotels struggle if they can’t fill rooms. These abbreviations cover the tools and terms you’ll use to manage bookings, work with travel partners, and keep your rooms occupied—without overspending on commissions.

Abbreviation	Full Name	Simple Definition	Managerial Application
OTA	Online Travel Agency	Platforms like Expedia, Booking.com, or Airbnb that let guests book hotels online (charge 10-25% commissions).	Balance OTA bookings with direct bookings. If OTAs make up 60%+ of bookings, offer direct incentives (free breakfast, late checkout) to cut commission costs. Use a “Best Rate Guarantee” to encourage guests to book via your website.
CRS	Central Reservation System	Software that centralizes all bookings (website, OTAs, phone, walk-ins) to avoid overbooking.	Ensure integration with your PMS (Property Management System). A linked CRS/PMS updates inventory in real time—so a room booked via your website isn’t accidentally sold again through an OTA.
OTB	On The Books	The number of rooms already booked for a future date, plus the revenue those bookings will generate.	Predict future performance. If OTB is only 30% for a holiday weekend (two weeks out), run a last-minute promotion. If OTB is 80% (three weeks out), raise rates slightly to maximize revenue. Use OTB to schedule staff (e.g., more housekeepers for high-OTB weeks).
NRB	Negotiated Rate Business	Discounted rates offered to specific groups (corporations, travel agencies, government organizations).	Limit NRB room counts to avoid lowering overall ADR. Review accounts quarterly—if a company books only 5 rooms/year but gets a 20% discount, renegotiate or end the agreement. Prioritize NRB partners that book consistently (e.g., local businesses with frequent travelers).
BRG	Best Rate Guarantee	A promise to match lower prices found on OTAs, plus a bonus (e.g., 10% off) for guests who book directly.	Drive direct bookings. Promote BRG on your website and social media. Train front desk staff to explain BRG to guests—so they know booking directly saves them money.

Operations & Staff: Keeping the Hotel Running Smoothly

A hotel’s success depends on its team. These abbreviations will help you communicate with staff, set standards, and solve day-to-day problems—from room clean to guest complaints.

Abbreviation	Full Name	Simple Definition	Managerial Application
FOH	Front of House	Guest-facing areas and staff (front desk, bellhops, servers, concierges).	Balance FOH staffing with demand. If OTB is high, schedule more front desk agents to reduce check-in lines. Train FOH staff to share guest feedback (e.g., “Guest mentioned a noisy AC”) with BOH teams.
BOH	Back of House	Behind-the-scenes teams (housekeepers, kitchen staff, maintenance, accountants).	Align BOH with FOH needs. If FOH reports a surge in walk-ins, add housekeepers to turn rooms faster. Ensure BOH staff understand SOPs (e.g., linen folding standards) to maintain consistency.
PMS	Property Management System	Software used by the front desk to check guests in/out, track folios (bills), and update room status (clean/dirty/occupied).	Train staff to use all PMS features—like adding restaurant charges to a guest’s folio or storing preferences (e.g., “Loves high floors”). Regularly update the PMS to fix bugs and add new tools (e.g., mobile check-in).
SOP	Standard Operating Procedure	Step-by-step guides for specific tasks (e.g., “Checking a guest in,” “Cleaning a guest room”).	Create SOPs for all key tasks and train new hires on them. Review SOPs quarterly—for example, add a step for sanitizing high-touch surfaces (light switches, remote controls) post-pandemic.
MOD	Manager on Duty	The staff member responsible for emergencies, guest complaints, and unexpected issues when the general manager is away (nights, weekends, holidays).	Create a clear MOD schedule (no gaps in coverage). Train all managers on MOD duties—even finance or sales managers—so they can handle issues like late-night room repairs or guest disputes.
Turnover Rate	Staff Turnover Rate	The percentage of staff who leave over a period (calculated as “number of departures ÷ average staff count”).	Monitor FOH turnover (often higher than BOH). If turnover is 30%+, survey departing staff to find issues (e.g., low wages, long hours). Fix problems with targeted solutions—like raises for top performers or flexible schedules.

Events & Group Business: Boosting High-Revenue Bookings

Group bookings (like weddings, conferences, or corporate retreats) can drive significant revenue. These abbreviations will help you manage these events smoothly and protect your bottom line.

Abbreviation	Full Name	Simple Definition	Managerial Application
MICE	Meetings, Incentives, Conferences, Exhibitions	Group events that typically book multiple rooms and use event spaces (e.g., a company conference, a sales team incentive trip).	Assign a dedicated MICE coordinator to handle these bookings. Offer “package deals” (rooms + event space + catering) to increase total revenue. Track MICE GOPPAR—ensure these events are more profitable than individual bookings.
BEO	Banquet Event Order	A detailed document that outlines all event requirements (menu, room setup, AV equipment, timing).	Review BEOs 1 week before the event to catch errors (e.g., wrong menu, missing AV gear). Share BEOs with all teams (FOH, BOH, catering) so everyone is on the same page.
GTD	Guaranteed (Number of Guests)	The minimum number of guests a group promises to bring (hotel charges for GTD even if fewer attend).	Include GTD clauses in all group contracts. Confirm GTD numbers 3 days before the event—so catering can adjust food orders (avoid waste or shortages).
Room Block	Room Block	A set number of rooms reserved for a group (e.g., 50 rooms for a wedding party).	Set “release dates” in contracts—unbooked rooms in the block are released to the public 2 weeks before the event (avoids empty rooms). Monitor block usage—if only 20/50 rooms are booked, offer the group a smaller block to free up inventory.

Extended Terminology: Front Office & Housekeeping

The front office and housekeeping teams are critical to guest satisfaction. These terms will help you support their work and resolve issues fast.

Term	Full Name/Definition	Managerial Application
Folio	A guest’s bill that includes all charges (room, restaurant, laundry, Wi-Fi).	Train front desk staff to update folios in real time (no surprise charges at checkout). Review daily folio reports to catch errors (e.g., double-charged meals).
Walk-in	A guest who arrives without a reservation.	Track walk-in numbers and ADR—if walk-ins are high, your hotel’s location or signage is working. Train front desk staff to upsell walk-ins (e.g., “Would you like to upgrade to a suite for $20 more?”).
No-show	A guest who books a room but doesn’t arrive (and doesn’t cancel).	Implement a no-show policy—charge a percentage of the room rate (e.g., 50%) for no-shows. Send 24-hour booking reminders (text/email) to reduce no-show rates.
DND	Do Not Disturb	A sign guests hang on doors to indicate they don’t want to be disturbed (e.g., for sleep).
OOO	Out of Order	Rooms that can’t be used due to issues (broken AC, leaks, furniture damage).
Linen Asset	Hotel linens (sheets, towels, pillowcases) that are tracked as inventory.	Monitor linen loss rate (e.g., number of towels replaced monthly). Choose durable linens to reduce replacement costs. Train housekeepers to handle linens carefully (no bleach on colored towels).

Practical Tips for Using These Abbreviations

Knowing what these shortcuts mean is good. Using them to help your hotel run better is what matters. Here’s how:

Get your team on the same page: Make a quick one-page list of the key terms. Go over it together at your next team meeting. Ask everyone to start using these words in their daily updates (like saying, “Our OTB for next week is 60%”). This helps everyone understand each other better. If the front desk and housekeeping both know what OTB means, they can team up better when things get busy.
Catch problems sooner: Pick a time each week to look at your key numbers like ADR, RevPAR, and GOPPAR. If you see RevPAR is down but ADR is up, you know right away that not enough rooms are booked. Then you can try a weekend deal (like “15% Off This Weekend!”) to fill those empty rooms. This helps you fix issues fast. If GOPPAR is down but RevPAR is up, you’re spending too much—so you can cut unnecessary costs (like unused office supplies or extra staff on slow days).
Keep the dictionary handy: Save this guide to your phone or print a copy for your desk. When you’re on a call with an OTA partner and they mention “NRB rates,” you won’t have to pause to ask what they mean. Over time, these terms will become second nature—but it’s okay to reference the dictionary until then.

Conclusion

Hotel abbreviations don’t need to be confusing. Think of them as handy tools. They help you talk faster, make better choices, and lead your team well. Whether you’re checking a RevPAR report, talking with an OTA, or showing a new staff member the ropes, this guide turns jargon into clear steps.

Here’s the key: great managers don’t just know these terms—they use them to fix problems. See a low ADR? Tweak your prices. OTB numbers dropping? Launch a promotion. Team mixed up on SOPs? Train them. Every shortcut here has one job: helping your hotel succeed.