What Is RevPAR?
RevPAR (Revenue Per Available Room) is one of the most important performance metrics in the hotel industry. It measures how well a property fills its rooms and how much it charges for them, blending occupancy and pricing into a single number. Unlike ADR, which only reflects rate, RevPAR accounts for empty rooms — so it gives a truer picture of a hotel's revenue-generating ability.
How to Use This Calculator
You can compute RevPAR two ways. Choose ADR × Occupancy and enter your average daily rate and occupancy percentage. Or choose Room Revenue ÷ Available Rooms and enter total room revenue for the period along with the number of available rooms (rooms multiplied by days, if measuring over time). The calculator returns RevPAR instantly.
The Formula Explained
RevPAR is defined as:
$$\text{RevPAR} = \text{ADR} \times \frac{\text{Occupancy (\%)}}{100}$$RevPAR = ADR × Occupancy Rate, where occupancy is expressed as a decimal (e.g. 75% = 0.75). Equivalently, RevPAR = Total Room Revenue ÷ Available Rooms. Both formulas yield the same value because room revenue equals ADR times the number of rooms sold, and dividing by available rooms reproduces ADR times occupancy.
$$\text{RevPAR} = \frac{\text{Total Room Revenue}}{\text{Available Rooms}}$$
Worked Example
A hotel has an ADR of $120 and an occupancy rate of 75%.
$$\text{RevPAR} = \$120 \times 0.75 = \$90.00$$Alternatively, if the property earned $45,000 in room revenue across 500 available room-nights,
$$\text{RevPAR} = \$45{,}000 \div 500 = \$90.00$$— the same result.
FAQ
Does RevPAR include food and beverage revenue? No. RevPAR only counts room revenue, not ancillary income like dining, spa, or parking.
What is a good RevPAR? It depends entirely on market, location, and segment. Compare against your own historical figures and local competitors rather than a universal benchmark.
How is RevPAR different from ADR? ADR is the average rate per occupied room; RevPAR spreads revenue across all available rooms, so it penalizes empty inventory.
