Find out all about Hotel Average Daily Rate, including what it is, how to calculate it, when best to use it, and when not to. Read more on the Mews blog.
Businesses in the hospitality industry derive the bulk of their revenue from room sales. One of the key metrics used to understand room revenues is the average daily rate (ADR). If you’re investing in a hotel, motel, bed and breakfast or other lodging, it’s vitally important that you u...
The hotel occupancy rate is simply the percentage of rooms occupied at any time. Read more to find out how to increase your hotel's OCC.
Discover how to calculate your hotel's profit margin, industry averages, and how to increase profitability in 2025.
A hotel’s occupancy rate is typically calculated on a daily, weekly, monthly, or yearly basis. To calculate the occupancy rate of a hotel, you need to follow these steps: Determine the total number of available rooms in the hotel during the period you are interested in measuring. For exam...
Well, there are two ways by which you can calculate your RevPar: RevPAR = Rooms Revenue/ Rooms available OR RevPAR = Average Daily Rate (ADR) * Occupancy Rate; Here’s an example to help you understand the formula better: Suppose that you are a hotel with 200 rooms. The average daily...
The most straightforward way to calculate RevPAR is to multiply your ADR by your occupancy rate. The following RevPAR formula will give you the same result:Total room revenue / number of available rooms An example: The Grand Hotel generated €20,000 in room revenue by selling 200 of its 30...
RevPAR is used to assess a hotel’s ability to fill its available rooms at an average rate. If a property’s RevPAR increases, that means the average room rate or occupancy rate is increasing. How to Calculate RevPAR? (RevPAR formula) ...
While Hong Kong is pretty liberal when it comes to handing out visas, there is no guarantee you will get one. Seeing as the regular delivery is four working days you will have to continue paying to stay in a hotel until your visa arrives. There is the option to use the express or rus...
” This metric is important, he says, since it is a combination of the two factors that make up hotel room revenue: average daily rate (ADR) per room and occupancy. It is calculated by multiplying the two together or taking the total hotel room revenue and dividing it by the number of...