Revenue Per Available Room and Occupancy Rate | Federico Calò
Calculate key hotel revenue management KPIs: RevPAR, occupancy rate, and ADR. Enter available, occupied rooms, and revenues.
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Frequently Asked Questions
What is RevPAR and why is it important?
RevPAR (Revenue Per Available Room) is the revenue per available room, calculated as total room revenue ÷ available rooms. It is the main hotel revenue management metric because it combines both occupancy rate and average room rate, providing a complete view of commercial efficiency.
What is the difference between RevPAR and ADR?
The ADR (Average Daily Rate) is the average room rate for occupied rooms: revenue ÷ occupied rooms. The RevPAR considers all available rooms (occupied and vacant): revenue ÷ available rooms. RevPAR = ADR × (Occupancy%). A hotel with high ADR but low occupancy can have a lower RevPAR than one with moderate ADR and high occupancy.
How is RevPAR used for pricing decisions?
Compare your RevPAR with the compset to maximize revenue. If occupancy is high but RevPAR is low, raise rates. If both are low, consider promotion strategies. The break-even price shows the minimum rate to cover fixed costs.
Does RevPAR include F&B and spa revenues?
No, the classic RevPAR only considers room revenue. To include all revenue per available room, use TRevPAR (Total Revenue Per Available Room), which includes F&B, spa, parking, and other services. This calculator focuses on the standard room RevPAR.
How is it used?
- Enter available rooms
Shows the total number of rooms available for the period analyzed (nights × total rooms, e.g., 50 rooms × 1 night = 50 rooms available).
- Show occupied rooms
Enter the number of rooms actually sold (occupied) during the period. Occupancy rate is the ratio of occupied to available rooms.
- Specify room revenue
Enter the total revenue generated by rooms during the period (room revenue only, exclude F&B and other services). RevPAR is calculated by dividing by available rooms.
- Interpret RevPAR and ADR
Room Revenue Indicator (RevPAR) is the key hotel performance metric. ADR shows the average room rate. RevPAR = ADR × (Occupancy/100).
- Break-even price (optional)
Optional: Enter fixed period costs to calculate the break-even price per room - the minimum rate to cover fixed costs with 100% occupancy.