RevPAR Calculator — Revenue Per Available Room

About the RevPAR Calculator — Revenue Per Available Room

Revenue Per Available Room (RevPAR) is arguably the single most important KPI in hotel revenue management. It combines two critical metrics — Average Daily Rate and Occupancy Rate — into one number that reflects how well a hotel monetises its entire inventory, not just the rooms it sells.

You can calculate RevPAR two ways: divide total room revenue by total available rooms, or multiply ADR by occupancy rate. Both methods produce the same result. This calculator supports both approaches so you can use whichever data you have on hand.

RevPAR is the standard benchmark used by STR, brand companies, asset managers, and lenders to compare hotel performance across properties and markets. A rising RevPAR indicates improving top-line health, making it a critical metric for investment decisions and management performance evaluations.

When This Page Helps

Unlike ADR or occupancy alone, RevPAR captures pricing and demand simultaneously. A hotel can have a high ADR but low occupancy (or vice versa) and still underperform on RevPAR. This makes RevPAR the most balanced indicator of room revenue performance and the preferred metric for competitive benchmarking.

How to Use the Inputs

1. Enter your total room revenue for the period.
2. Enter total rooms available (rooms in hotel × nights in period).
3. Alternatively, enter ADR and occupancy percentage directly.
4. The calculator computes RevPAR using both methods.
5. Compare your RevPAR against the competitive set.
6. Track RevPAR trends month over month and year over year.

Example Calculation

Tips & Best Practices

• RevPAR growth from rate increases is generally more profitable than from occupancy gains.
• Use RevPAR index (RGI) to see how you perform relative to competitors.
• Track RevPAR by day of week for micro-level pricing insights.
• Exclude out-of-order rooms from available rooms for a more accurate figure.
• Compare RevPAR across room types to guide renovation investment.
• Combine RevPAR with GOPPAR for a profitability-focused analysis.

Why RevPAR Dominates Hotel Analytics

RevPAR has become the universal currency of hotel performance measurement because it balances the tension between rate and volume. Revenue managers aim to maximize RevPAR, not just ADR or occupancy independently, because the optimal strategy often involves trade-offs between the two.

RevPAR and Investment Decisions

Hotel investors and appraisers rely heavily on RevPAR when valuing properties. A hotel's value is often expressed as a multiple of RevPAR or revenue per key. Higher RevPAR translates directly into higher property valuations, lower cap rates, and more favorable financing terms.

Limitations of RevPAR

While RevPAR is powerful, it ignores non-room revenue, distribution costs, and operating expenses. A hotel with high RevPAR but excessive OTA commissions may net less profit than a lower-RevPAR property with strong direct bookings. Supplementing RevPAR with net RevPAR and GOPPAR provides a more complete picture.

Frequently Asked Questions

• What is a good RevPAR?

  RevPAR benchmarks vary widely. A luxury urban hotel might target $250+ while a limited-service roadside property might achieve $60-$80. Use your STR comp set RevPAR as the most relevant benchmark.

• Which RevPAR formula should I use?

  Both formulas give the same result. Use revenue ÷ available rooms when you have aggregate data. Use ADR × occupancy when comparing rate-driven versus occupancy-driven performance.

• Does RevPAR account for non-room revenue?

  No. RevPAR only measures room revenue performance. TRevPAR (Total Revenue Per Available Room) includes food & beverage, spa, parking, and other ancillary revenue streams.

• How does RevPAR relate to profitability?

  RevPAR measures top-line room revenue efficiency. It doesn't account for costs. GOPPAR (Gross Operating Profit Per Available Room) is better for profitability analysis because it deducts operating expenses.

• Can RevPAR go up when ADR goes down?

  Yes. If occupancy rises enough to offset the ADR decline, RevPAR can increase. For example, dropping ADR by $10 but gaining 15 points of occupancy can yield higher RevPAR.

• What is RevPAR index (RGI)?

  RevPAR Generating Index divides your RevPAR by the comp set average RevPAR and multiplies by 100. An RGI above 100 means you're gaining more than your fair share of market revenue.