RevPAR Calculator
Calculate Revenue Per Available Room (RevPAR), a key performance indicator in the hospitality industry.
Enter the total room revenue for a period and the total number of available rooms during that same period.
Enter Financial Data
Understanding RevPAR
What is RevPAR?
RevPAR (Revenue Per Available Room) is a metric used in the hospitality industry to measure hotel performance. It is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate, or by dividing total room revenue by the total number of available rooms in a given period. It provides a snapshot of revenue generated per *available* room, regardless of whether the room was occupied or not.
RevPAR is a critical indicator because it takes into account both how well a hotel is filling its rooms (occupancy) and how much revenue is generated from each room sold (ADR). A higher RevPAR indicates better overall financial performance.
RevPAR Formula
There are two common ways to calculate RevPAR:
RevPAR = Total Room Revenue / Total Available RoomsRevPAR = Average Daily Rate (ADR) * Occupancy Rate
This calculator uses the first formula: Total Room Revenue divided by the Total Number of Available Rooms for a specific period.
Why is RevPAR Important?
RevPAR is considered one of the most important metrics for hotel management and owners. It helps assess financial health, compare performance against competitors (benchmarking), evaluate pricing strategies, and make informed decisions regarding operations, marketing, and investments. Unlike Occupancy (which only considers filled rooms) or ADR (which only considers revenue per *sold* room), RevPAR provides a more comprehensive view of overall revenue generation efficiency.
RevPAR Examples
Click on an example to see the calculation:
Example 1: Busy Weekend
Scenario: A hotel with 150 available rooms earns $22,500 in room revenue on a busy Saturday night.
1. Known Values: Total Room Revenue = $22,500, Total Available Rooms = 150.
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $22,500 / 150
4. Result: RevPAR = $150.00
Conclusion: The hotel generated $150 in revenue for each of its available rooms that night.
Example 2: Weekday Slow Period
Scenario: The same hotel (150 available rooms) earns $9,000 in room revenue on a slow Tuesday.
1. Known Values: Total Room Revenue = $9,000, Total Available Rooms = 150.
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $9,000 / 150
4. Result: RevPAR = $60.00
Conclusion: RevPAR is lower during the slow period, reflecting reduced occupancy or lower rates.
Example 3: Monthly Performance
Scenario: A hotel has 300 available rooms per night. In a 30-day month, total available rooms are 300 * 30 = 9000. Total room revenue for the month was $720,000.
1. Known Values: Total Room Revenue = $720,000, Total Available Rooms (for the month) = 9000.
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $720,000 / 9000
4. Result: RevPAR = $80.00
Conclusion: The average RevPAR for the month was $80.
Example 4: Comparing Properties
Scenario: Hotel A had $50,000 revenue from 400 available rooms. Hotel B had $60,000 revenue from 500 available rooms. Which performed better by RevPAR?
1. Known Values: Hotel A: Revenue = $50,000, Rooms = 400. Hotel B: Revenue = $60,000, Rooms = 500.
2. Calculation (Hotel A): RevPAR = $50,000 / 400 = $125.00
3. Calculation (Hotel B): RevPAR = $60,000 / 500 = $120.00
4. Result: Hotel A RevPAR = $125.00, Hotel B RevPAR = $120.00.
Conclusion: Hotel A had a slightly higher RevPAR in this period.
Example 5: Full Occupancy, Lower Rates
Scenario: A hotel with 200 available rooms achieves 100% occupancy (sold all 200 rooms) but average rate was low, leading to $25,000 in total room revenue.
1. Known Values: Total Room Revenue = $25,000, Total Available Rooms = 200.
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $25,000 / 200
4. Result: RevPAR = $125.00
Conclusion: Despite full occupancy, the RevPAR reflects the lower average rate.
Example 6: Low Occupancy, Higher Rates
Scenario: A hotel with 200 available rooms has only 50% occupancy (sold 100 rooms) but achieved a higher average rate, earning $20,000 in total room revenue.
1. Known Values: Total Room Revenue = $20,000, Total Available Rooms = 200.
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $20,000 / 200
4. Result: RevPAR = $100.00
Conclusion: Lower occupancy led to a lower RevPAR compared to Example 5, even with potentially higher individual room rates.
Example 7: Long-term Stay Revenue
Scenario: An extended-stay hotel with 120 available rooms had $180,000 in room revenue over a 30-day month (120 rooms * 30 days = 3600 available rooms).
1. Known Values: Total Room Revenue = $180,000, Total Available Rooms = 3600.
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $180,000 / 3600
4. Result: RevPAR = $50.00
Conclusion: The RevPAR reflects the long-term pricing structure.
Example 8: Small Boutique Hotel
Scenario: A boutique hotel with 25 available rooms earns $3,750 in room revenue on a peak night.
1. Known Values: Total Room Revenue = $3,750, Total Available Rooms = 25.
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $3,750 / 25
4. Result: RevPAR = $150.00
Conclusion: Small hotels use RevPAR similarly to larger ones.
Example 9: Period with Out-of-Order Rooms
Scenario: A hotel *has* 100 rooms total, but 5 were out-of-order for maintenance. So, 95 rooms were available. Room revenue was $11,400.
1. Known Values: Total Room Revenue = $11,400, Total Available Rooms = 95 (100 total - 5 OOO).
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $11,400 / 95
4. Result: RevPAR = $120.00
Conclusion: RevPAR correctly uses *available* rooms, not total rooms.
Example 10: Zero Revenue
Scenario: A hotel with 50 available rooms had no room revenue on a specific day (e.g., completely empty).
1. Known Values: Total Room Revenue = $0, Total Available Rooms = 50.
2. Formula: RevPAR = Total Room Revenue / Total Available Rooms
3. Calculation: RevPAR = $0 / 50
4. Result: RevPAR = $0.00
Conclusion: A RevPAR of zero indicates no revenue was generated from the available inventory.
Frequently Asked Questions about RevPAR
1. What does RevPAR stand for?
RevPAR stands for Revenue Per Available Room.
2. What is the formula for calculating RevPAR?
The most direct formula is: RevPAR = Total Room Revenue / Total Available Rooms for a specific period.
3. Why is RevPAR a better indicator than just Occupancy or ADR alone?
RevPAR combines both metrics. Occupancy tells you how many rooms are filled, and ADR tells you the average price of *sold* rooms. RevPAR shows how much revenue you're making based on *all* your rooms, occupied or not, giving a clearer picture of overall performance and revenue-generating efficiency.
4. Does RevPAR include revenue from other hotel services (food, spa, etc.)?
No, RevPAR specifically uses *Total Room Revenue*. Revenue from other departments is not included in the standard RevPAR calculation.
5. What is considered a "good" RevPAR?
There's no universal "good" RevPAR. It varies greatly depending on the hotel's location, market segment (luxury, budget, etc.), size, and the specific time period. A good RevPAR is often determined by comparing it to historical performance, budget goals, and the RevPAR of competitor hotels (using metrics like RevPAR Index or RGI - Revenue Generating Index).
6. Can RevPAR be zero?
Yes, RevPAR can be zero if the total room revenue for the period is zero (e.g., a hotel had no paying guests) and there were available rooms.
7. What period should RevPAR be calculated for?
RevPAR can be calculated for any defined period: a day (most common), a week, a month, a quarter, or a year. Consistency in the period is crucial for comparisons.
8. How do "out-of-order" rooms affect RevPAR?
Rooms that are genuinely unavailable for sale (e.g., due to maintenance) should be excluded from the "Total Available Rooms" count. This ensures RevPAR reflects performance based on the actual operating inventory.
9. Is RevPAR the same as GOPPAR?
No. RevPAR (Revenue Per Available Room) focuses solely on room revenue relative to available rooms. GOPPAR (Gross Operating Profit Per Available Room) is a broader metric that considers *total* revenue from all departments and subtracts operating expenses, providing a view of profitability per available room.
10. Can I use different currencies in the calculator?
Yes, the calculator works with any currency. Just ensure the "Total Room Revenue" figure is in the currency you wish the RevPAR result to be in. The output currency will be the same as the input currency.
