RevPAR or Revenue Per Available Rooms is a measure of how well a hotel manages its inventory and rates in order to optimize revenue. To calculate, multiply occupancy by ADR or divide total reoom revenue by total rooms in the hotel (hotel capacity)
How to calculate RevPAR in 3 simple steps
- Check total room revenue for the relevant date or period. For example 2000 Euro.
- Divide total room revenue with hotel capacity.
If your hotel for example have a total of 50 rooms to sell.
Then calculate:
2000 Euro (room revenue) / 50 (hotel capacity)
RevPAR = 40 Euro
An alternative way to calcualte RevPAR:
ADR (average Daily rate) * Occupancy
To make things easy for you, please go ahead and download my free RevPAR and ADR calcualtor 😊