ADR focuses solely on room revenue, while RevPAR is based on both room revenue and occupancy levels. So RevPAR can give you a broader indication of how much revenue your rooms are bringing in collectively. How to calculate your hotel’s RevPAR – RevPAR meaning Average daily rate (ADR) x...
Still, no matter which metric is used, the goal stays the same: To increase revenue and profits. In this post, we will discuss the formulas you can use to calculate RevPAR, the alternative KPIs, and offer strategies for increasing RevPAR — or GoPAR or ARPAR or whichever metric you pref...
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...
Discover how to calculate your hotel's profit margin, industry averages, and how to increase profitability in 2025.
How do you calculate TRevPAR? To understand how to find your number, let’s take a look at an example TRevPAR calculation. Let’s say your hotel has 20 available rooms on a given day, and brought in total revenues of $4000 on that day. Your TRevPAR calculation would look like this...
How to calculate it: RevPAR = TOTAL REVENUE FROM ALL ROOMS / TOTAL NUMBER OF ROOMS.For instance, if your hotel has 120 rooms, and you have received €23,500 in total from letting out some or all of these rooms, the calculation is €23,500/120 which gives a RevPAR of €195.83. Is...
How to calculate RevPAR There are two RevPAR formulas: 1. Hotel Occupancy multiplied by Average Daily Rate 2. Room Revenue divided by Number of Rooms Available during a specified period RevPAR helps you compare month-over-month performance ...
RGI = Your hotel’s RevPar / Average market RevPar How to Calculate RevPar First, decide on a period you will look at, which can be a week, month, or year. Then use one of the following formulas below to calculate RevPar:
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.
Also, because the factors used to calculate these ratios are specific to every single business, they can be misleading when used as generic benchmarks for other businesses in the same industry. As previously explained, a more appropriate ratio to assess hotel profitability is ROS (Return on Sale...