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How to use the RevPAR calculator
Four steps take you from raw figures to a number you can compare with last year, your budget and your competitive set. The currency only changes how the result is displayed; no exchange rate is applied.
What is the RevPAR formula?
RevPAR means revenue per available room. An available room night is one room you could have sold for one night: 60 rooms over 30 nights give 1 800 available room nights. Because RevPAR spreads room revenue across all of them, every unsold room lowers the result.
You can reach the same figure from ADR and occupancy. ADR (average daily rate) is the room revenue earned per room night sold, and occupancy is the share of available room nights you sold.
Direct formula
RevPAR = room revenue ÷ available room nights Use it when you know total room revenue and inventory for the period.
Equivalent formula
RevPAR = ADR × occupancy as a decimal Use it when ADR and occupancy are already known. 70% occupancy is 0.70.
RevPAR calculation example
A 60-room hotel measures a 30-night month. It sells 1 260 room nights and records €176 400 in room revenue.
| Figure | Value | How it is calculated |
|---|---|---|
| Available room nights | 1 800 | 60 rooms × 30 nights |
| Room nights sold | 1 260 | From the PMS for the same month |
| Room revenue | €176 400 | Rooms only, excluding taxes |
| ADR | €140.00 | €176 400 ÷ 1 260 |
| Occupancy | 70% | 1 260 ÷ 1 800 |
| RevPAR | €98.00 | €176 400 ÷ 1 800, or €140.00 × 0.70 |
What does your RevPAR result mean?
A result of €98 means the hotel earned an average of €98 in room revenue for every available room night in the period, including rooms that were not sold.
There is no single “good” RevPAR. The same number can come from very different strategies, so read it with ADR and occupancy beside it.
| Strategy | ADR | Occupancy | RevPAR |
|---|---|---|---|
| Rate-led hotel | €196.00 | 50% | €98.00 |
| Volume-led hotel | €122.50 | 80% | €98.00 |
RevPAR limitations and assumptions
- RevPAR measures room revenue only. Food and beverage, spa and events sit outside it; use TRevPAR for total revenue.
- It is not a profit measure: payroll, distribution commissions and other costs are not deducted.
- Results are only comparable when revenue, inventory and period definitions match.
- If inventory changes during the period, use actual available room nights instead of rooms × nights.
- The calculator does not adjust for inflation, taxes or exchange rates, and does not audit your figures.
RevPAR calculator FAQ
What does RevPAR stand for in hotels?
RevPAR stands for revenue per available room. It measures room revenue across all available room nights in a selected period, whether or not every room was sold.
How do you calculate hotel RevPAR?
Divide total room revenue by available room nights. If ADR and occupancy are already known, multiply ADR by occupancy expressed as a decimal. For example, 70% occupancy is 0.70 in the formula.
Is RevPAR the same as ADR?
No. ADR divides room revenue by room nights sold, while RevPAR spreads room revenue across all available room nights. So whenever some available room nights stay empty, RevPAR is lower than ADR; the two are equal only when every room is sold.
Can I calculate RevPAR from ADR and occupancy?
Yes. Multiply ADR by the occupancy rate as a decimal. An ADR of €140 and occupancy of 70% gives €98 RevPAR.
What is a good RevPAR for a hotel?
There is no universal good RevPAR. A meaningful assessment compares the property with its own history, budget and a relevant competitive set while accounting for market, season, property type and positioning.
Does RevPAR include food and beverage revenue?
No. Standard RevPAR uses room revenue. Metrics based on total operating revenue, such as TRevPAR, answer a different question.
Does RevPAR measure hotel profit?
No. RevPAR does not deduct payroll, utilities, distribution costs, commissions or other expenses. Use profitability metrics and the hotel's profit-and-loss reporting alongside RevPAR.
