Enter the average daily rate and the occupancy rate of a hotel into the calculator to determine the revenue per available room (RevPAR).

## RevPAR Formula

The following formula is used to calculate the average revenue per available room (RevPAR).

RevPAR = ADR * OR
• Where RevPAR is the revenue per available room
• ADR is the average daily rate
• OR is the occupancy rate

To calculate revPAR, multiply the average daily rate by the occupancy rate.

## RevPAR Definition

What is RevPAR?

RevPAR, the revenue per available room, is a term used in hotel businesses to describe the total revenue that it’s possible to generate per available room.

RevPAR is calculated by multiplying the average daily rate by the occupancy rate. As a hotel sells more rooms, its occupancy rate will increase, and the RevPAR will also increase.

## Example Problem

How to calculate RevPAR?

1. First, determine the average daily rate.

For this example, the average daily rate of the rooms in the hotel comes out to $400.00. If you are unsure of how to calculate the average daily rate, visit the calculator linked above. 2. Next, determine the occupancy rate. This particular hotel has 500 rooms and 400 are sold out for the night. This leads to an occupancy rate of .80 (80%). 3. Finally, calculate the RevPAR. The revenue per available room is calculated to be: RevPAR = ADR * OR RevPAR =$400*.80
RevPAR = \$320.00