Understanding the hotel ADR and RevPAR calculator — concept and principle
This calculator finds a hotel's average daily rate (ADR), occupancy rate and revenue per available room (RevPAR) from room revenue, room-nights sold, number of rooms and nights in the period. It also shows available and unsold room-nights and the revenue at full occupancy at the current ADR. Use it to track hotel or short-term rental performance and compare periods or properties.
How it is calculated
- Available room-nights = rooms × nights in the period.
- ADR = room revenue ÷ room-nights sold.
- Occupancy = room-nights sold ÷ available room-nights.
- RevPAR = room revenue ÷ available room-nights = ADR × occupancy.
- Revenue at full occupancy = ADR × available room-nights.
Leave out complimentary rooms and non-room income such as food or parking.
The principle
ADR measures pricing: the average price paid for each room actually sold. Occupancy measures demand: how many of the available rooms were sold. RevPAR combines the two by spreading room revenue over all available rooms, sold or not. A hotel can raise RevPAR by charging more or by filling more rooms, and RevPAR shows which trade-off works better. That is why hotels and hosts track all three metrics together.
Worked example
Default inputs: room revenue $62,400, 480 room-nights sold, 20 rooms, 30 nights.
- Available room-nights = 20 × 30 = 600; unsold = 120.
- ADR = 62,400 ÷ 480 = $130.00.
- Occupancy = 480 ÷ 600 = 80%.
- RevPAR = 62,400 ÷ 600 = $104.00 (= 130 × 0.80).
- Revenue at full occupancy at this ADR = 130 × 600 = $78,000.
| Room revenue for the period | ADR (average daily rate) |
|---|---|
| 15,600 | $32.50 |
| 31,200 | $65.00 |
| 46,800 | $97.50 |
| 62,400 | $130.00 |
| 78,000 | $162.50 |
| 93,600 | $195.00 |
| 124,800 | $260.00 |
How to read the result
Compare RevPAR with similar properties in the same market and season. A high ADR with low occupancy may mean prices are too high; high occupancy with a low ADR may mean prices could rise. Full-occupancy revenue is an upper bound that is rarely reached in practice.
Common mistakes
- Including food, parking or resort fees in room revenue.
- Counting complimentary rooms as sold, which lowers ADR.
- Using the wrong number of available rooms when some are out of service.
- Comparing RevPAR across very different markets or seasons.
Frequently asked questions
What is the difference between ADR and RevPAR?
ADR is revenue per sold room; RevPAR is revenue per available room, including empty ones.
How do I calculate RevPAR from ADR?
Multiply ADR by the occupancy rate.
Is higher occupancy always better?
Not if it comes from cutting prices so much that RevPAR falls.
Sources: Standard lodging-industry definitions: ADR = room revenue ÷ rooms sold; occupancy = rooms sold ÷ rooms available; RevPAR = room revenue ÷ rooms available