If you’re a hotel owner or marketer running Google Ads, one of the first questions you’ve probably asked is: What kind of return should I expect? In other words, is your ad spend working or just draining your budget?
The answer depends on a few key factors, but here’s the short version:
A good Google Ads ROAS (Return on Ad Spend) for hotels usually falls between 4:1 and 8:1. For every $1 you spend, you aim to make $4 to $8 in direct revenue.
Let’s dig into what that means, why that range varies, and, most importantly, how to push your results higher without wasting time or money.
What Exactly Is ROAS?
ROAS stands for Return on Ad Spend, and it’s pretty straightforward:
ROAS = Revenue from Ads ÷ Cost of Ads
So, if your hotel spends $1,500 on Google Ads and gets $7,500 worth of direct bookings, its ROAS is 5:1, or 500%. Every dollar spent brings in five more.
It’s one of the clearest ways to measure whether your ad strategy is paying off. But don’t stop there. ROAS is just one piece of the puzzle. We’ll come back to that.
What’s the Average ROAS for Hotels?
On average, hotels see a ROAS between 400% and 800% with well-managed Google Ads campaigns.
That said, averages don’t always tell the full story. Here’s how it usually breaks down:
- Branded chains often see higher ROAS because people already know their names. Their ads work more like reminders.
- Independent hotels usually work harder to convince someone to book, especially if their website isn’t optimized.
- Luxury or boutique properties may have fewer bookings. Still, each one is worth more, so they often get higher ROAS even at lower volumes.
- Budget hotels or high-competition areas (think Las Vegas or Manhattan) might face inflated ad costs, which can drive ROAS down unless the targeting is tight.
The bottom line is that your location, pricing, audience, and website all play a role. ROAS isn’t just a number; it reflects how well your ad spend aligns with what guests want.
Why ROAS Can Vary So Much for Hotels
It’s not uncommon for one hotel to hit 10:1 ROAS while another in the same city struggles to break even. Why? Because ROAS isn’t just about how much you spend; it’s about how smart that spend is.
Here are a few things that can make or break your results:
1. Poor Tracking = Incomplete Picture
If you’re not tracking conversions correctly, you might think your ROAS is low when it’s not. Set up proper Google Ads conversion tracking and connect it with GA4. This helps you see where bookings come from and which clicks lead to revenue.
2. Broad Targeting Kills Budget
If you’re bidding on terms like “hotels near me” or “cheap hotels,” you’re probably attracting people who aren’t a good fit. It’s better to focus on specific, relevant keywords like “pet-friendly hotel in Santa Fe” or “romantic boutique hotel Asheville.”
The more closely your ads match what someone’s looking for, the more likely they are to book.
3. Weak Landing Pages Waste Clicks
Clicks aren’t bookings. People will bounce if your landing page (aka your hotel’s website) is slow, outdated, or confusing. Fast-loading, mobile-friendly pages with clear calls to action and a working booking engine convert far better.
4. High Competition = Higher Costs
Some cities or seasons compete fiercely, driving up cost-per-click (CPC). If your ads are competing against big OTAs like Expedia, you’ll need a tighter strategy to ensure you’re still turning a profit.
How to Improve Your Hotel’s ROAS
If your ROAS is under 4:1 or worse, and you’re not even sure what it is, don’t panic. Here are a few practical steps that can make a big difference.
- Focus on Direct Bookings
Use ads to bring people to your site, not to OTAs. Bookings made directly through your platform avoid commission fees and give you control over the guest experience.
- Use Smart, Not Broad, Targeting
Start small and targeted. Focus on what makes your hotel unique. If you’re near a major concert venue or have an amazing rooftop bar, build ads around those hooks. Speak to real interests, not just generic features.
- Try Google Hotel Ads
If you haven’t yet, consider using Google Hotel Ads. These are in search results with rates, photos, and availability. They convert well, especially for mobile users looking to book fast.
- Run Retargeting Campaigns
Most people don’t book on their first visit. Remarketing lets you show ads to people who already visited your site. That keeps your hotel at the forefront of your mind and often results in higher ROAS for a lower budget.
- Review Your Booking Engine
If you’ve ever tried booking a room on your site and gotten frustrated, your guests are, too. A clunky or confusing booking engine will hurt your ROAS no matter how great your ads are.
Don’t Chase Numbers Chase Value
ROAS is useful, but it doesn’t tell the whole story. For example, a lower ROAS on a high-value guest who books a suite for five nights can still be a huge win. Meanwhile, a high ROAS on cheap one-night bookings might look good on paper but leave little profit.
Look beyond the metric. Are your ads bringing in the kind of guests you want? Are they booking directly? Are they coming back?
That’s where the real value lies.
Final Thoughts
The best ROAS comes from ads that feel like an invitation, not a sales pitch. You’re not just selling a room; you’re offering a stay, a memory, and an experience. When your ads reflect that, people notice.
And when your strategy aligns with what real guests want, Google Ads becomes less of a gamble and more of a steady, reliable engine for direct bookings.
You don’t need a huge budget. You just need the right focus.
Want to help review your Google Ads setup? Start by checking your tracking, targeting, and landing page. Small changes in those three areas often lead to big improvements in ROAS.
