Occupancy Rate Calculator (hotel occupancy, ADR & RevPAR)

Understanding the occupancy rate calculator — concept and principle

This calculator gives the three core hotel performance measures for a period: occupancy rate, average daily rate (ADR) and revenue per available room (RevPAR). It also shows available and unsold room-nights and the average number of rooms occupied per night. Hotel managers, guesthouse owners and short-term rental hosts use it to track performance and compare with the market.

How it is calculated

• Available room-nights (supply) = rooms × nights − out-of-order room-nights
• Occupancy rate = room-nights sold ÷ available room-nights × 100
• ADR = room revenue ÷ room-nights sold
• RevPAR = room revenue ÷ available room-nights (= occupancy × ADR)
• Unsold room-nights = available − sold
• Average rooms occupied per night = room-nights sold ÷ nights

Enter room revenue only, excluding tax, food or parking. Complimentary rooms are usually left out of rooms sold.

The principle

Occupancy measures how full the hotel is; ADR measures the price achieved on rooms that sold. Either one alone can mislead: you can fill every room by cutting prices, or keep prices high and leave rooms empty. RevPAR combines both, because room revenue divided by available rooms equals occupancy times ADR. That is why it is the most widely used single measure of hotel revenue performance. Rooms out of order are removed from supply because they could not be sold.

Worked example

Defaults: 120 rooms, 30 nights, no rooms out of order, 2,520 room-nights sold, room revenue 352,800.

1. Available room-nights = 120 × 30 = 3,600.
2. Occupancy = 2,520 ÷ 3,600 × 100 = 70%.
3. ADR = 352,800 ÷ 2,520 = $140.00.
4. RevPAR = 352,800 ÷ 3,600 = $98.00 (0.70 × 140).
5. Unsold room-nights = 1,080; average rooms occupied = 2,520 ÷ 30 = 84.

How to read the result

Compare RevPAR with your competitive set and with the same period last year. For scale, CoStar/STR reported US weekly results for 18–24 May 2025 of 67.5% occupancy, ADR of US$164.57 and RevPAR of US$111.02; local markets differ widely. If occupancy is high but RevPAR lags, prices may be too low; if ADR is high but occupancy weak, prices may be too high for demand.

Common mistakes

• Including taxes or food and beverage revenue in room revenue.
• Counting complimentary rooms as sold.
• Forgetting to remove rooms closed for repair.
• Comparing a weekend period with a full-week period.

Frequently asked questions

What is RevPAR?

Revenue per available room: room revenue divided by all rooms available, equal to occupancy × ADR.

What is a good occupancy rate?

It depends on market and season. Compare with similar properties nearby.

Why use RevPAR instead of occupancy?

Occupancy ignores price; RevPAR shows whether filling rooms and pricing work together.

Sources: Rhode Island General Assembly, Short Term Rental Commission, "Short Term Rental Presentation Glossary" (26 September 2024) · CoStar/STR, US weekly hotel performance results, 18–24 May 2025