Hotel Revenue Per Available Room (RevPAR) Calculator
Calculate RevPAR (Revenue Per Available Room) by dividing total room revenue by available rooms and the time period. The standard KPI hotel managers use to benchmark property performance against competitors.
About this calculator
Revenue Per Available Room (RevPAR) is the most widely used performance metric in the hotel industry because it simultaneously captures both occupancy and rate efficiency. Unlike ADR, which only measures the average price of sold rooms, RevPAR penalizes empty rooms — a fully occupied hotel at a lower rate can outperform a premium-priced but half-empty one. The formula is: RevPAR = Total Room Revenue / (Total Available Rooms × Period). Equivalently, RevPAR = ADR × Occupancy Rate, where Occupancy Rate = Occupied Rooms / Total Available Rooms. A rising RevPAR signals that a hotel is either filling more rooms, charging higher rates, or both. Hotel chains use RevPAR index (a property's RevPAR divided by a competitive set average) to gauge relative market performance and set revenue management targets.
How to use
A 100-room hotel generates $45,000 in room revenue over a 30-day month. RevPAR = $45,000 / (100 × 30) = $45,000 / 3,000 = $15.00 per available room per day. To cross-check: if 60 rooms were occupied each night on average, occupancy = 60/100 = 60%, and ADR = $45,000 / (60 × 30) = $25.00. RevPAR = $25.00 × 60% = $15.00 — confirming the same result. A competitor with a $20 RevPAR in the same market is outperforming this property, prompting a review of pricing or distribution strategy.
Frequently asked questions
What is a good RevPAR for a hotel and how does it vary by market?
There is no universal 'good' RevPAR because it varies enormously by location, property class, and season. Luxury urban hotels in gateway cities like New York or London regularly achieve RevPAR above $200, while budget roadside motels in secondary markets may operate profitably at $40–$60. The meaningful benchmark is the RevPAR Index — your RevPAR divided by the average RevPAR of your competitive set — where a score above 100 means you are capturing more than your fair market share.
What is the difference between RevPAR and ADR in hotel performance measurement?
ADR (Average Daily Rate) measures only the revenue earned per occupied room, ignoring how many rooms went unsold. RevPAR accounts for unsold inventory by spreading revenue across all available rooms, occupied or not. For example, a hotel with a $200 ADR but only 40% occupancy has a RevPAR of $80, while a competitor charging $140 ADR at 70% occupancy achieves a $98 RevPAR — clearly the better outcome. RevPAR is therefore a more complete picture of revenue performance than ADR alone.
How can hotel managers use RevPAR to improve revenue strategy?
RevPAR decomposition — separating rate effects from occupancy effects — reveals which lever needs adjustment. If RevPAR is falling because occupancy dropped while ADR held steady, the problem is demand (and the fix might be promotions, OTA visibility, or group sales). If occupancy is high but RevPAR is flat, the hotel may be leaving money on the table with rates set too low during peak demand. Revenue managers track RevPAR alongside TRevPAR (Total Revenue Per Available Room, including F&B and ancillaries) to ensure room revenue gains aren't offset by losses elsewhere in the property.