How to calculate revpar with occupancy and adr with pictures
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Revpar is also calculated by dividing a hotel's total room revenue by the total number of available rooms in the period being measured. Revpar is a widely used performance metric in the hospitality industry. The measurement is calculated by multiplying a hotel's average daily room rate ( adr ) by its occupancy rate.
What are revpar and the revpar formula?
Revpar is also calculated by dividing a hotel's total room revenue by the total number of available rooms in the period being measured. In practice, it’s the simulation of the average daily rate in a full occupancy scenario. Revpar represents the revenue generated per available room, whether or not they are occupied. Contrary to what many hoteliers think, a higher adr and not a higher occupancy rate, translates to a higher revpar.
