Calculate Your Hotel’s RevPAR

Curious about your hotel’s performance? Our RevPAR calculator makes it easy to measure your revenue per available room in just a few clicks. This essential metric gives you a clear picture of how efficiently you’re filling rooms and the rates you’re achieving, helping you make smarter revenue decisions.

Calculate Your Property’s RevPAR

RevPAR (Revenue per Available Room) is a crucial performance metric in the hotel industry. To calculate it, you can use one of the following formulas:

RevPAR Formula:
RevPAR = Total Room Revenue / Total Available Rooms
Or alternatively:
RevPAR = Average Daily Rate (ADR) × Occupancy Rate

Simply input your hotel’s room revenue and available rooms into our calculator to see your RevPAR instantly.

Your Property’s RevPAR is:

Once you’ve entered your figures, your RevPAR will be displayed here. This number tells you how much revenue you’re generating per available room, giving you a snapshot of your property’s financial health.

What is Revenue per Available Room (RevPAR)?

RevPAR, or Revenue per Available Room, is a key performance metric used in the hotel industry to assess a property’s financial success. It combines room rates and occupancy to show how effectively a hotel is generating revenue. A higher RevPAR generally means better performance, but it should always be considered alongside other metrics like ADR (Average Daily Rate) and GOPPAR (Gross Operating Profit per Available Room).

RevPAR Formula: How and When to Calculate RevPAR

RevPAR is typically calculated daily, weekly, or monthly to track performance trends. Here’s a quick refresher on how to calculate it:

• Formula 1: Total Room Revenue ÷ Total Available Rooms
• Formula 2: ADR × Occupancy Rate

For example, if your hotel has 100 rooms, an ADR of $120, and an occupancy rate of 80%, your RevPAR would be:

$120 × 0.80 = $96

That means each available room, whether occupied or not, is generating $96 in revenue.

Why is Your RevPAR Important?

RevPAR helps hoteliers understand whether they’re effectively pricing rooms and filling them. It also serves as a benchmark against competitors and industry averages. However, RevPAR alone doesn’t account for costs—so while a higher RevPAR is usually good, profitability should also be considered.

RevPAR Limitations

While RevPAR is a valuable metric, it has some limitations:

• Ignores Costs: It doesn’t factor in operational expenses, meaning a high RevPAR doesn’t always mean high profitability.
• Doesn’t Reflect Total Revenue: RevPAR only measures room revenue and doesn’t account for additional income from food and beverage, events, or other services.
• Can Be Misleading: A hotel might have a high RevPAR due to high rates but a low occupancy rate, which could lead to long-term revenue issues.

3 Ways to Improve Your Property’s RevPAR

If your RevPAR isn’t where you want it to be, here are three effective strategies to increase it:

1. Optimise Pricing with Dynamic Rates
   Adjust rates based on demand, seasonality, and competitor pricing to maximise revenue. A hotel management system with dynamic pricing capabilities can help automate this process.
2. Enhance Your Booking Strategy
   Leverage a channel manager to distribute your rooms across multiple OTAs (Online Travel Agencies), direct booking channels, and corporate partnerships.
3. Improve Guest Experience for Higher ADR
   A well-reviewed hotel can justify higher rates. Invest in service, amenities, and personalised experiences to encourage repeat bookings and positive reviews.

RevPAR vs. Other Hotel Performance Metrics

RevPAR is just one piece of the puzzle. Here’s how it compares to other key hotel performance indicators:

RevPAR and RevPAR Index (RGI)

RevPAR Index (or Revenue Generation Index) compares your RevPAR to the market average:

RGI = Your RevPAR ÷ Market RevPAR

An RGI above 1.0 means you’re outperforming your competitors, while below 1.0 suggests room for improvement.

RevPAR and GOPPAR

GOPPAR (Gross Operating Profit per Available Room) provides a more complete financial picture than RevPAR. While RevPAR focuses solely on revenue, GOPPAR accounts for operating expenses, showing actual profitability.

RevPAR and TrevPAR

TrevPAR (Total Revenue per Available Room) includes revenue from all hotel services, not just rooms. This metric is useful for properties with strong food, beverage, and ancillary revenue streams.

Understanding RevPAR and how it fits into your overall revenue strategy can help you make smarter pricing and operational decisions. Use our calculator, track your performance, and implement strategies to boost your hotel’s profitability.