Hotel RevPAR Calculator

Exploring RevPAR for Maximum Hotel Efficiency

RevPAR (Revenue per Available Room) is a key performance metric in the hospitality industry. It merges both Occupancy Rate and Average Daily Rate (ADR) to show how successfully you’re filling rooms at profitable rates.

RevPAR empowers hotel owners, managers, and operators to better understand how much each room earns. Unlike ADR, which focuses on pricing alone, RevPAR provides a broader view by combining pricing insights with occupancy data.

RevPAR goes deeper than a simple surface-level figure, it’s a lens through which hotel professionals can assess financial output, pricing tactics, and positioning in the market. RevPAR combines the two to show overall revenue efficiency, whereas occupancy rate shows how many rooms were reserved and ADR shows pricing power. It takes into account how well you're filling rooms and how profitably you're selling them.

Since RevPAR combines both Occupancy and ADR, even small shifts in either metric can impact your profits. For example:

RevPAR is often weighed against similar metrics like:

While other indicators focus on specific areas, RevPAR still stands strong as a dependable measure of financial performance, especially for most hotels.

While these metrics offer deeper operational insights, RevPAR remains the gold standard for measuring room revenue performance—the core revenue stream for most hotels.