Room Night
Room Night is the standard unit of hotel inventory and sales: one room occupied (or sold) for one night. A guest staying three nights in one room generates three room nights; two rooms for two nights generate four.
Formula
Room Nights = Number of Rooms × Number of Nights
Example
A group books 12 rooms for 3 nights. That is 12 × 3 = 36 room nights. At an ADR of €140, the booking is worth €5,040 in room revenue (36 × €140).
Why it matters
Room nights are the common denominator across the industry. Hotels measure production by channel, segment and source market in room nights, OTAs report growth and market share in room nights booked, and contracts such as corporate agreements, consortia deals and group blocks usually commit to a volume of room nights. Because a booking count ignores length of stay, room nights give a more accurate view of the demand a channel actually delivers.
Room nights also feed directly into other metrics. Occupancy is room nights sold divided by room nights available, and ADR is room revenue divided by room nights sold. OTA quarterly results routinely lead with room nights growth as the headline volume indicator.