RevPAR calculator

RevPAR, short for Revenue Per Available Room, is a hotel's room revenue divided by the total number of rooms available, whether or not each one sold. It's calculated two ways: multiply your average daily rate (ADR) by your occupancy rate, or divide total room revenue by the number of available rooms. Both formulas give the same answer.

RevPAR matters because it's the only headline metric that captures price and volume in one figure. ADR alone tells you what guests pay when they book, but says nothing about how many rooms sold. Occupancy rate tells you how full you were, but says nothing about price. A hotel can raise its ADR and still lose RevPAR if occupancy drops enough to offset the higher rate, and it can cut rates to fill rooms and still lose RevPAR if the extra bookings don't cover the discount.

Owners, general managers, and revenue management teams use RevPAR as the standard yardstick for comparing performance across time periods, room types, and competitors. It shows up in every STR report, every ownership review, and every revenue management conversation, because it answers the question that actually matters: how much money is each room generating, on average, sold or not.

There are two ways to calculate RevPAR, and they always produce the same answer.

Method 1: ADR × Occupancy Rate. Multiply your average daily rate by your occupancy rate (as a decimal).

Method 2: Total Room Revenue ÷ Available Rooms. Divide total room revenue by the total number of rooms available in the period (rooms × nights).

Worked example: a 100-room hotel sells 2,040 room-nights over a 30-night month, 68% occupancy, at an average rate of $150 a night. That's $306,000 in room revenue.

Method 1: $150 × 0.68 = $102
Method 2: $306,000 ÷ (100 rooms × 30 nights) = $306,000 ÷ 3,000 = $102

Both formulas land on the same $102 RevPAR. Use whichever inputs you have on hand: ADR and occupancy if you track them separately, or total revenue and room count if you're pulling straight from your PMS report.

ADR, occupancy rate, and RevPAR all describe hotel performance, but each one hides something the others reveal.

ADR tells you what guests paid, on average, for the rooms that sold. It says nothing about how many rooms sold, a hotel could report a strong ADR with half its rooms empty. Occupancy rate tells you what share of available rooms sold. It says nothing about price, a fully booked budget hotel and a half-empty luxury resort can both report high occupancy while sitting on very different revenue.

RevPAR combines both into one number: revenue per available room, sold or not. It catches the failure mode neither ADR nor occupancy shows alone, a rate hike that drives occupancy down enough to lose money overall, or a discount deep enough that the extra bookings don't cover it.

A good RevPAR has no fixed target: it depends on your market, your segment, and the season. A roadside budget hotel and a downtown luxury property don't compete for the same guests, so comparing their raw RevPAR tells you nothing useful.

The number that actually answers "am I doing well?" is RevPAR Index (RGI): your RevPAR divided by your competitive set's average RevPAR. An index above 100 means you're outperforming the hotels you actually compete against for the same guests. Below 100 means they're winning more of the available demand than you are, even if your own RevPAR looks fine in isolation.

That's why STR and other benchmarking services build their reports around comp sets, not absolute RevPAR figures. Track your own RevPAR over time, but judge it against your index.