HOW TO CALCULATE RevPar

Posted by Ted Mannon on Monday, August 3rd, 2015 Category1

RevPar = ADR x occupancy

Revenue Per Available Room is a hotel industry financial metric calculated by multiplying the Average Daily Rate by the percentage occupancy.

RevPAR can also be calculated by dividing the total room revenue in a given period (excluding discounts, sales tax and meals) by the number of available rooms in the same period. Conceptually, RevPAR represents the success the hotel is having at filling its rooms. Increasing RevPAR means either that rates or Occupancy Rate are rising, or both.

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