How To Calculate Revpar In Hotel

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How To Calculate Revpar In Hotel. Revpar represents the revenue generated per available room, whether or not they are occupied. Divide $21,000 by the total number of rooms available (300) and you’ll have your $70 revpar.

What is RevPAR? Optimize Your Hotel Performance Travel
What is RevPAR? Optimize Your Hotel Performance Travel

Note that revpar doesn’t account for hotel size. Using the second formula, we can arrive at the same answer: If a property's revpar increases, that means the average room rate or occupancy rate is increasing.

For a given period, you can calculate hotel revpar using these revpar formulas:

Revpar represents the revenue generated per available room, whether or not they are occupied. Using the first formula and the information above, we can calculate that company xyz's revpar was: Computing a hotel revpar is a productivity giveaway for any hotel manager as it gives a precise idea of how much a hotel can charge for its rooms. Note that revpar doesn’t account for hotel size.