1. What is RevPAR?

RevPAR (Revenue Per Available Room) is a key performance metric in the hospitality industry that measures a hotel's ability to fill its available rooms at an average rate. It combines both occupancy and average daily rate into a single metric.

2. How Does the Calculator Work?

The calculator uses the RevPAR formula:

Where:

• \( ADR \) — Average Daily Rate ($)
• \( OR \) — Occupancy Rate (decimal)

Explanation: The formula multiplies the average daily room rate by the occupancy rate to calculate revenue generated per available room, regardless of whether the room was occupied.

3. Importance of RevPAR Calculation

Details: RevPAR is crucial for hotel performance analysis, benchmarking against competitors, revenue management strategies, and overall financial planning in the hospitality industry.

4. Using the Calculator

Tips: Enter ADR in dollars and occupancy rate as a decimal (e.g., 0.85 for 85%). Both values must be valid (ADR ≥ 0, OR between 0-1).

5. Frequently Asked Questions (FAQ)

Q1: What is a good RevPAR value?
A: Good RevPAR values vary by market, location, and hotel type. Generally, higher RevPAR indicates better performance, but it should be compared against competitors and historical performance.

Q2: How does RevPAR differ from ADR?
A: ADR measures average room rate, while RevPAR considers both room rates and occupancy, providing a more comprehensive performance metric.

Q3: Can RevPAR be higher than ADR?
A: No, since RevPAR = ADR × Occupancy Rate, and occupancy rate is ≤ 1, RevPAR cannot exceed ADR.

Q4: What factors affect RevPAR?
A: Seasonality, market demand, competition, pricing strategies, marketing efforts, and overall economic conditions all impact RevPAR.

Q5: How often should RevPAR be calculated?
A: Most hotels calculate RevPAR daily, weekly, and monthly to track performance trends and make informed pricing decisions.