In the following video, Fool contributor Matt Thalman discusses three metrics specific to the hospitality industry that investors should watch when earnings reports have been announced: average daily rate, hotel occupancy, and revenue per available room.

Matt says to also consider comparing the three different metrics on a quarterly basis with past performance and against other hotel companies. Doing so will give you a better idea of how well a particular company is performing and help you decide whether your money belongs in the industry.