HesapHanem

Hotel RevPAR Calculator

Enter the average daily rate and occupancy to find RevPAR.

How it is calculated

RevPAR is the average room revenue for every room you could have sold, occupied or not: RevPAR = ADR × occupancy % ÷ 100. ADR is the average daily rate in dollars, meaning room revenue divided by rooms sold, and occupancy is rooms sold as a percentage of rooms available. The same figure comes from room revenue ÷ rooms available.

Occupancy is typed as a percentage, so 72.5 means 72.5%. ADR must be zero or more and occupancy must be between 0 and 100; a negative ADR or an occupancy above 100 shows no result, since real inventory cannot be more than full. 0% occupancy gives $0.00. RevPAR counts room revenue only, so food, spa and other income should be left out of the ADR if you want a like-for-like figure. The result is shown in dollars with two decimals.

Worked example

A hotel has an ADR of $148.50 and occupancy of 72.5% for the month. RevPAR = 148.50 × 72.5 ÷ 100 = 148.50 × 0.725 = 107.6625, shown as $107.66. Each available room, sold or empty, therefore earned about $107.66 a night on average. A competitor with an ADR of $120 and occupancy of 90% would earn 120 × 0.90 = $108.00, nearly the same RevPAR through a very different mix of price and fill.

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Common mistakes

  • Typing occupancy as a decimal (0.725). The field is a percentage, so 0.725 would be read as 0.725% and RevPAR would be close to zero.
  • Entering total room revenue in the ADR field. ADR is already divided by rooms sold.
  • Including breakfast, spa or conference revenue in ADR. RevPAR is a room-revenue metric.
  • Computing occupancy against rooms that were out of order or against the wrong denominator, while ADR uses a different one.
  • Comparing RevPAR across hotels without looking at ADR and occupancy separately. The same RevPAR can hide very different strategies.

About this calculator

RevPAR (Revenue Per Available Room) is the single most-watched performance metric in hotel revenue management because, unlike occupancy or average daily rate alone, it captures both pricing and demand in one number — it can be calculated either as ADR × occupancy rate, or equivalently as total room revenue divided by the total rooms available (occupied and vacant) for the period.

Two hotels can have the same RevPAR through very different strategies — one filling every room at a lower rate, another running lower occupancy at a premium rate — so revenue managers track RevPAR alongside ADR and occupancy separately to diagnose which lever is driving performance and to benchmark against competitive sets (an index called RevPAR Index or “Fair Share”). Multiply average daily rate by occupancy and you have RevPAR; enter the two figures and the result is shown directly.

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Comments (1)

  • Editorial team

    Two very different hotels can post the same RevPAR. An ADR of 120 at 75% occupancy gives 90.00, and so does an ADR of 100 at 90%. So read RevPAR next to its two parts, and keep ADR to room revenue only, since food and spa income would inflate it. You can cross-check by dividing total room revenue by rooms available times nights. Which competitor set do you benchmark against, and over what period?

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