RevPAR Calculator Measure Your Hotel’s Revenue Performance Instantly

RevPAR (Revenue Per Available Room) measures the average revenue your hotel earns from each available room, whether that room is sold or not. Unlike ADR, which only considers occupied rooms, RevPAR gives a more realistic picture of your overall revenue performance.

RevPAR is widely used by:

• Hotel owners
• Revenue managers
• Asset managers
• Investors
• PMS and RMS users

It helps evaluate how well your hotel is balancing room rates and occupancy levels.

RevPAR Formula (WordPress-Friendly)

You can calculate RevPAR in two simple ways:

RevPAR = ADR × Occupancy Rate

or

RevPAR = Total Room Revenue ÷ Number of Available Rooms

Both formulas give the same result. Use whichever data is easier for you to access.

How to Use the RevPAR Calculator

Using our RevPAR Calculator is quick and simple:

1. Enter your Average Daily Rate (ADR)
2. Enter your Occupancy Rate (%)
3. Click Calculate to get your RevPAR instantly

Alternatively, you can input Total Room Revenue and Total Available Rooms to calculate RevPAR directly.

The calculator displays live results, helping you analyze performance without spreadsheets or manual calculations.

RevPAR Calculation Example

Let’s look at a simple example.

If:

• ADR = ₹6,000
• Occupancy Rate = 80%

RevPAR = 6,000 × 0.8 = ₹4,800

This means your hotel earns ₹4,800 per available room, on average, per night.

Another example using revenue:

If:

• Total Room Revenue = ₹960,000
• Available Rooms = 200

RevPAR = 960,000 ÷ 200 = ₹4,800

Why RevPAR Is Important for Hotels

RevPAR is a critical metric because it shows revenue efficiency, not just volume.

1. Combines Rate and Occupancy

A hotel can have high occupancy but low rates, or high rates with low occupancy. RevPAR shows the true revenue performance by combining both.

2. Helps Compare Performance

RevPAR allows you to:

• Compare month-over-month performance
• Analyze seasonal trends
• Benchmark against competitors

3. Supports Smarter Pricing Decisions

Tracking RevPAR helps you decide whether to:

• Increase room rates
• Run promotions
• Focus on higher-value guest segments

4. Valuable for Investors and Owners

RevPAR is often used by investors to evaluate:

• Property performance
• Market competitiveness
• Long-term revenue potential

Common RevPAR Mistakes Hotels Make

1. Chasing Occupancy at Any Cost

Heavy discounting may fill rooms, but can reduce RevPAR. Selling cheap rooms may increase occupancy while lowering revenue per available room.

2. Ignoring Channel Costs

RevPAR doesn’t include commission costs. High OTA dependency can inflate RevPAR while reducing net profit.

3. Not Tracking Trends

Looking at RevPAR only occasionally limits insights. Consistent tracking reveals performance patterns and opportunities.

How to Improve Your RevPAR

Improving RevPAR requires balancing price, demand, and distribution.

1. Use Dynamic Pricing

Adjust rates based on demand, seasonality, and events instead of fixed pricing.

2. Focus on High-Value Segments

Target corporate travelers, long-stay guests, or premium leisure segments that pay higher rates.

3. Improve Direct Bookings

Reducing OTA dependency increases net revenue and protects RevPAR margins.

4. Upsell and Upgrade

Encourage guests to book higher room categories or add paid upgrades during booking.

5. Optimize Distribution Channels

Ensure inventory and pricing are optimized across OTAs, GDS, and direct channels.

RevPAR vs ADR vs Occupancy

Understanding how RevPAR compares to other metrics is essential.

A hotel with lower occupancy but higher ADR can sometimes achieve a better RevPAR than a fully booked hotel with discounted rates.

RevPAR for Different Property Types

• Budget hotels: Focus on occupancy-driven RevPAR growth
• Mid-scale hotels: Balance pricing and volume
• Luxury hotels: Focus on rate integrity and premium RevPAR
• Motels: Use RevPAR to track profitability during peak vs off-peak seasons

Final Thoughts

RevPAR is the backbone of hotel revenue analysis. By tracking it consistently and using a reliable RevPAR Calculator, hotels can make smarter decisions around pricing, promotions, and distribution.

Use this RevPAR Calculator to:

• Evaluate current performance
• Compare different time periods
• Identify opportunities to increase revenue
• Reduce dependency on low-margin channels

Start calculating your RevPAR today and take control of your hotel’s revenue performance.

Frequently Asked Questions (FAQs)

What does RevPAR mean in hotels?

RevPAR shows how much revenue a hotel generates per available room, combining pricing and occupancy.

How is RevPAR calculated?

RevPAR = ADR × Occupancy Rate

or

RevPAR = Total Room Revenue ÷ Available Rooms

What is a good RevPAR?

A good RevPAR depends on your market, location, and property type. Compare with past performance and competitors rather than focusing on a fixed number.

Is RevPAR better than ADR?

RevPAR provides a more complete picture because it considers both room rates and occupancy.

Does RevPAR include food and beverage revenue?

No. RevPAR only includes room revenue. For total revenue, hotels track TRevPAR.

Can RevPAR increase even if occupancy drops?

Yes. If ADR increases significantly, RevPAR can improve despite lower occupancy.

How often should RevPAR be tracked?

Most hotels track RevPAR daily, weekly, and monthly to understand trends and make timely decisions.