What Is RevPAR? Formula and Hotel Examples

Q: How do you calculate RevPAR?

Divide total room revenue by total available rooms, or multiply ADR by occupancy rate. The two formulas produce the same result when the inputs cover the same period.

Q: What is the difference between RevPAR and TRevPAR?

RevPAR uses room revenue only. TRevPAR includes revenue from rooms and other hotel departments, then divides that total by available rooms.

Q: What is a good RevPAR for a hotel?

There is no universal good RevPAR. Compare your result with your own budget, prior periods, seasonality, segment, and a genuinely comparable local competitive set.

Q: Why can high occupancy with low ADR be risky?

Discounting can fill rooms while reducing revenue per available room and adding variable operating costs. RevPAR and GOPPAR help show whether the extra occupancy creates useful revenue and profit.

What Is RevPAR? Formula, Examples, and Hotel Use Cases

Learn how hotel RevPAR is calculated, what it reveals, where it falls short, and how to use it alongside ADR, occupancy, and GOPPAR.

Quick answer

RevPAR, or revenue per available room, equals room revenue divided by available rooms. It can also be calculated as ADR multiplied by occupancy rate.

Editorial note: All monetary examples and ranges in this guide are illustrative. Benchmark your property against a relevant local competitive set before making pricing decisions.

ScaleMyHotel Editorial Team

· Published 28 January 2025 · Updated 18 August 2026 · 9 min read

What is RevPAR?

RevPAR (revenue per available room) measures how effectively a hotel turns its available room inventory into room revenue. It combines rate and occupancy in one number, which makes it more useful than looking at either metric alone.

RevPAR is a rooms-revenue measure, not a complete profit measure. A hotel can improve RevPAR while distribution, payroll, energy, or service costs reduce the profit generated by that improvement.

How to calculate RevPAR

You can use either formula for the same reporting period:

RevPAR = total room revenue ÷ available rooms
RevPAR = ADR × occupancy rate

Illustrative example

Assume a 50-room hotel has 1,500 available room nights in a 30-day month. It sells 1,050 room nights at an ADR of ₹6,000.

Occupancy: 1,050 ÷ 1,500 = 70%
Room revenue: 1,050 × ₹6,000 = ₹63,00,000
RevPAR: ₹63,00,000 ÷ 1,500 = ₹4,200
Cross-check: ₹6,000 × 70% = ₹4,200

The example shows the calculation only. It is not a market benchmark.

Why ADR or occupancy alone can mislead

Consider three illustrative properties with the same available inventory:

Property	Occupancy	ADR	RevPAR
Hotel A	70%	₹6,000	₹4,200
Hotel B	80%	₹5,000	₹4,000
Hotel C	50%	₹9,000	₹4,500

Hotel B has the highest occupancy, but not the highest RevPAR. Hotel C has the highest ADR and RevPAR, but the table still does not reveal acquisition costs or operating profit.

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Use like-for-like comparisons

Compare the same property across equivalent weekdays, seasons, and demand conditions. When comparing competitors, use hotels with similar location, positioning, room type, and service model.

RevPAR vs ADR, TRevPAR, and GOPPAR

Metric	Basic calculation	Best used for	Main limitation
ADR	Room revenue ÷ rooms sold	Pricing power on occupied rooms	Ignores unsold inventory
RevPAR	Room revenue ÷ available rooms	Combined rooms-rate and occupancy performance	Ignores non-room revenue and costs
TRevPAR	Total hotel revenue ÷ available rooms	Resorts and full-service hotels with material ancillary revenue	Still ignores operating costs
GOPPAR	Gross operating profit ÷ available rooms	Profit contribution from available inventory	Requires consistent cost allocation

RevPAR is therefore a useful rooms-performance KPI, but GOPPAR is usually the stronger companion when the management question is profitability.

How to improve RevPAR responsibly

Review booking pace by stay date

Compare on-the-books occupancy with equivalent prior periods. If demand is arriving faster, test higher rates or tighter discounts. If pace is slower, inspect visibility, availability, restrictions, and value presentation before cutting price.

Protect high-demand inventory

Minimum-length-of-stay or closed-to-arrival controls can reduce gap nights around compressed dates. Apply them selectively and monitor displaced demand; a blanket restriction can also reject valuable bookings.

Audit channel economics

Track gross RevPAR and a net view after channel commissions, media spend, payment fees, and member discounts. A channel that produces more room revenue may still create less contribution.

Improve the value proposition

Packages, room differentiation, flexible terms, and direct-booking benefits can support rate without creating a public price mismatch. Test the offer by segment rather than assuming every guest values the same inclusion.

Measure ancillary and operating effects

For resorts and full-service hotels, review TRevPAR and GOPPAR alongside RevPAR. This prevents a room-only optimisation from hiding changes in restaurant, spa, staffing, or distribution economics.

A practical weekly RevPAR review

Export room revenue, rooms sold, and rooms available by stay date.
Calculate ADR, occupancy, and RevPAR for the current period.
Compare with budget, last year, and a relevant competitive set where available.
Segment the change by weekday, room type, channel, and lead time.
Record the pricing or inventory decision and review its result in the next cycle.

Use the RevPAR Benchmark Calculator for scenario modelling. Treat any displayed range as a starting point for analysis, not a promise of market performance.

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❓Frequently Asked Questions

How do you calculate RevPAR?

What is the difference between RevPAR and TRevPAR?

What is a good RevPAR for a hotel?

Why can high occupancy with low ADR be risky?

What Is RevPAR? Formula, Examples, and Hotel Use Cases

What is RevPAR?