What is RevPAR?
Revenue Per Available Room (RevPAR) is a key performance metric in the hotel industry, which is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. Occupancy rate is the percentage of available room-nights occupied.revpar = occupancy rate × average daily room rateExample of how to calculate using MS Excel:In cell A1, input occupancy rateIn cell B1, input average daily room rateIn cell C1, enter the formula =A1*B1It may also be calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.Keep in mind that RevPAR only measures the performance of the core business of hotels, letting rooms, and does not take into account revenue from other hotel services, such as restaurants, spas, golf courses, marinas, casinos etc. Many hotels make much of their revenue from additional services.Trends in RevPAR are very important. RevPAR can be used to compare companies only if they have broadly similar hotels - similar quality in similar locations. This is often possible as most hotels companies give regional breakdowns of RevPAR and this can be compared.You can get a a Free RevPAR Calculator Iphone app in the Apple store. The app features a streamlined interface that displays key hotel metrics alongside the figures that comprise them - RevPAR appears next to ADR and occupancy, for instance. The breakdowns enable hoteliers to evaluate their hotel's performance at a glance, and to determine immediately which areas are functioning best.