Formula for calculating Revenue per Available Room (RevPAR)

Revenue per Available Room (RevPAR) - RevPAR is one of the most important statistics in the hotel industry. RevPAR divides the total revenue generated by the hotel by the number of available rooms to sell (Available rooms = Total rooms in the hotel - Out of Order rooms).

It measures in effect the revenue generation capability of the hotel. Hotels with a large food & beverage operations and other recreational facilities have RevPAR well above the average Daily Rate.

The downside of RevPAR is the formula only evaluates your income from room sales ie it is not including other revenue generating areas like Food and Beverage, Spa, Recreational facilities etc. Those hotels with fewer revenue centres have RevPAR number closer to their ADR / ARR.

The formula for RevPAR calculation with examples:

RevPAR = Total Room Revenue / Total Number of Available Rooms for sale

Calculate Revenue Per Availalbe Room (RevPAR)

Revenue Per Availalbe Room (RevPAR):

Example 1:

Total Room Revenue for 01st Sep 2017         = 14,585.26

Total Available Rooms for sale 01st Sep 2017 = 258

RevPAR = 14585.26 / 258

               = 56.53

Example 2:

Total Room Revenue for 30th Aug 2017         = 22,890.00

Total Available Rooms for sale 30th Aug 2017 = 257

RevPAR = 22890.00 / 257

               = 89.06

Example 3  - Monthly RevPAR:

Total Room Revenue for September 2017         = 682,800.00

Total Available Rooms for sale September 2017 = 7750

RevPAR = 682,800.00 / 7750

               = 88.10

TRevPOR (Total Revenue per Occupied Room) - Is a measure to calculate total hotel revenue per occupied room. Which is calculated or derived from the sum of room revenue, food and beverage (F&B) revenue, and other revenues divided by the total occupied room.

The formula for TRevPOR calculation with examples:

TRevPOR = (Room + F&B + Other Revenue) / Total occupied rooms 

Example 1:

Total Hotel Revenue for 01st Sep 2017    = 25,585.26

Total Rooms Occupied for 01st Sep 2017        = 230

TRevPOR = 25,585.26 / 230

               = 111.24

Example 2:

Total Hotel Revenue for 30th Aug 2017  =  33,890.00

Total Rooms Occupied 30th Aug 2017    = 225

TRevPOR = 33,890.00 / 225

               = 150.62

Example 3 - Monthly TRevPOR:

Total Hotel Revenue for August 2017    =  775,090.00

Total Rooms Occupied for August 2017 = 6820

TRevPOR = 775,090.00 / 6820

               = 113.64