Hotel RevPAR Calculator

Quickly calculate your hotel’s revenue efficiency with our easy-to-use RevPAR Calculator.

Calculate your Hotel’s RevPAR

Understanding RevPAR for Optimal Hotel Performance

RevPAR (Revenue per Available Room) is one of the most crucial performance metrics in the hospitality industry. It combines both Occupancy Rate and Average Daily Rate (ADR) to measure how well your hotel fills rooms at the best possible rates.

RevPAR helps hotel owners, revenue managers, and hotel operators understand the true earning power of their rooms. Unlike ADR or occupancy alone, RevPAR delivers a comprehensive view by blending both pricing strategy and occupancy performance

RevPAR (Revenue per Available Room) isn’t just a surface-level KPI—it’s a strategic lens through which hotel operators evaluate revenue efficiency, pricing strategy, and market positioning. While Occupancy Rate tells you how many rooms are sold and ADR reflects the average price per room, RevPAR combines these metrics to reveal the true revenue performance of your inventory. It accounts for both how well you're selling and how profitably you're selling.

Because RevPAR is derived from both Occupancy Rate and ADR, even small shifts in either component can significantly affect your bottom line. For instance:

  • A hotel with low occupancy but a high ADR might have the same RevPAR as a hotel with high occupancy but lower ADR.
  • This duality encourages a balanced approach—prioritizing quality bookings over deep discounts, and sustainable demand over short-term occupancy spikes.

RevPAR is often compared with other metrics like:

  • GOPPAR (Gross Operating Profit Per Available Room) – which factors in operating expenses.
  • TRevPAR (Total Revenue Per Available Room) – which includes all revenue sources, not just rooms.
  • NetRevPAR – which subtracts customer acquisition costs (like OTA commissions).

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

High-performing hotel teams use RevPAR trends to:

  • Forecast demand and adjust pricing dynamically
  • Segment guests by revenue contribution, not just volume
  • Align marketing spend with high-ADR or high-conversion periods
  • Optimize room inventory during high and low seasons
  • Benchmark against competitive sets or market averages

For example, if your RevPAR is increasing while your occupancy is stable, it means your rate strategy is working. If RevPAR is declining despite high occupancy, it may indicate over-discounting or misalignment with demand.

To fully understand your performance in the competitive landscape, monitor your RevPAR Index (RPI), also known as the Revenue Generation Index (RGI).It’s calculated as:

RPI* =

Your Hotel’s RevPAR / Market Average RevPAR

*An RPI above 1.0 means you’re outperforming your comp set. Anything below 1.0 signals lost revenue opportunities.

By mastering RevPAR and understanding the forces that influence it, hoteliers can make smarter, faster, and more profitable decisions. HotelSmarters’ tools empower you to not just track RevPAR, but to optimize it.

Simple Steps to Calculate RevPAR

Calculating RevPAR (Revenue per Available Room) is easier than you think. Follow these simple steps to measure how efficiently your hotel is generating room revenue.

1

Gather Your Data dw

You can calculate RevPAR in two ways, depending on what data you have:

  • 1.

    Total Room Revenue – The income generated from all room sales during a specific period.

  • 2.

    Total Available Rooms – The number of rooms in your hotel multiplied by the number of days in the period.

Example:
If you have 100 rooms and you're calculating for 30 days, the total available rooms = 100 × 30 = 3,000.
2

Use One of the Two RevPAR Formulas"

You’ll need two key figures:

Formula 1:
RevPAR = Total Room Revenue / Total Available Rooms
Formula 1:
RevPAR = Occupancy Rate × Average Daily Rate (ADR)

Example: If your occupancy is 80% and your ADR is $150, then RevPAR = 0.8 × 150 = $120.

3

Analyze the Result

The resulting RevPAR value shows how much revenue you’re generating for each available room, whether it's sold or not.

  • •

    A higher RevPAR means you're either selling more rooms, charging higher rates, or both.

  • •

    A lower RevPAR may indicate the need for pricing adjustments, better marketing, or revenue strategy improvements.

Calculate RevPAR

ADR vs RevPAR

ADR (Average Daily Rate) and RevPAR (Revenue per Available Room) are two of the most important KPIs in hotel revenue management but they measure very different things.

What is ADR?

ADR (Average Daily Rate) measures the average price paid per room sold during a specific time period.

Formula:

ADR*

= Total Room Revenue / Number of Rooms Sold

*An RPI above 1.0 means you’re outperforming your comp set. Anything below 1.0 signals lost revenue opportunities.

What is RevPAR?

RevPAR (Revenue per Available Room) goes a step further. It combines occupancy and room rate to show how efficiently your total room inventory is generating revenue.

Formula:

RevPAR*

= Total Room Revenue / Total Available Rooms

or

RevPAR = Occupancy Rate × ADR

*RevPAR reflects both pricing and sales volume. It answers:"How much revenue is each available room bringing in—whether it’s sold or not?"

Key Differences ADR vs. RevPAR

Metric

ADR

RevPAR

Measures

Average revenue per room sold

Revenue per available room (sold or unsold)

Focus

Pricing strategy

Overall revenue efficiency

Formula

Revenue ÷ Rooms Sold

Revenue ÷ Available Rooms OR Occ. × ADR

Impacted by

Room rates only

Room rates and occupancy

Use Case

Evaluating pricing performance

Evaluating total revenue performance

What is RevPAR Index?

RevPAR Index (RPI), also known as the Revenue Generation Index (RGI), is a powerful tool that allows hotels to compare their RevPAR performance to that of their competitive set or market average.

The RevPAR Index is calculated using the following formula:

RevPAR Index = Your Hotel’s RevPAR / Market Average RevPAR

  • Your Hotel’s RevPAR: This is the Revenue per Available Room for your property.

  • Market Average RevPAR: This is the average RevPAR for your competitive set or the market you operate in (e.g., city or region).

The RevPAR Index tells you how well you're performing relative to your competition.

  • RPI > 1.0: You’re outperforming your competitive set or market. Your hotel is generating more revenue per available room than others.

  • RPI = 1.0: You’re on par with the market. Your performance is in line with the average.

  • RPI < 1.0: You’re underperforming compared to competitors. Your hotel is generating less revenue per available room.

The RevPAR Index provides actionable insights for hotel operators and revenue managers, such as:

  • Identifying Revenue Opportunities: A lower-than-average RPI signals lost revenue potential, suggesting opportunities to optimize your rates or occupancy strategies.

  • Competitive Benchmarking: RPI allows you to track performance and adjust strategies to stay ahead of your competitors.

  • Evaluating Marketing Effectiveness: If your RPI is rising, it may indicate successful marketing or promotional campaigns driving bookings at higher rates.

To increase your RevPAR Index, focus on improving both occupancy and ADR:

  • Optimize Pricing: Use dynamic pricing strategies based on demand and market trends.

  • Enhance Marketing: Target high-value customer segments and use effective distribution channels.

  • Improve Operational Efficiency: Boost occupancy without lowering room rates through better inventory management and customer service.

About HotelSmarters Guest Experience Solutions

At HotelSmarters, we believe that a superior guest experience is the foundation of hotel success. That's why our comprehensive suite of guest experience solutions is designed to level up every stage of the guest journey, ensuring not only guest satisfaction but also driving repeat bookings and loyalty.

What We Offer

  • Personalized Guest Engagement

  • Smart Room Management

  • AI-Powered Service Automation

  • Guest Feedback and Sentiment Analysis

  • Best-in-Class Hotel Middleware

  • Interactive TV Solutions

  • Seamless Multi-Channel Communication

How Our Solutions Enhance Guest Experience

  • Optimize Pricing: Use dynamic pricing strategies based on demand and market trends.

  • Enhance Marketing: Target high-value customer segments and use effective distribution channels.

  • Improve Operational Efficiency: Boost occupancy without lowering room rates through better inventory management and customer service.

Frequently Asked Questions