RevPAR is the hotel industry’s headline metric — room revenue per available room. It blends rate and occupancy into one number: ADR times occupancy, or revenue divided by rooms available.
The example
$150 ADR at 80% occupancy.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | ADR | 150 |
| 3 | Occupancy 80% | → $120 |
The formula
The formula:
How it works
How it works:
ADR × occupancyblends how much each sold room earned with how full the hotel was.- Equivalently,
room_revenue / rooms_available— revenue spread across every available room. - RevPAR penalizes empty rooms, so it can’t be inflated by rate or occupancy alone.
- It’s the standard for comparing properties and tracking performance over time.
RevPAR vs TRevPAR: RevPAR is rooms-only. Total RevPAR (TRevPAR) divides all revenue — rooms, food, spa, events — by available rooms, capturing a resort’s full earning power. As hotels lean on ancillary revenue, TRevPAR has become the metric many owners watch alongside classic RevPAR.
Try it: interactive demo
ADR and occupancy.
Variations
From revenue
Other way:
Total RevPAR
All revenue:
RevPAR index
vs the comp set:
Pitfalls & errors
Available, not sold. RevPAR divides by available rooms — that’s what makes it different from ADR.
Decimal occupancy. 80% is 0.80 in the ADR×occupancy form.
Rooms-only for RevPAR. Use TRevPAR if you want all revenue streams.
Practice workbook
Frequently asked questions
How do I calculate RevPAR in Excel?
How is RevPAR different from ADR?
What is TRevPAR?
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