Hotel RevPAR Calculator
Revenue Per Available Room (RevPAR) is the hotel industry's most important performance metric, combining both room rate and occupancy into a single number. Understanding RevPAR helps hotel operators, investors, and managers evaluate pricing strategies, benchmark performance against competitors, and optimize revenue management decisions.
Calculate RevPAR & Revenue Metrics
RevPAR benchmarks are estimates based on STR (Smith Travel Research) national averages. Actual performance varies significantly by market, location, seasonality, and competitive set. This calculator is for educational and planning purposes only.
RevPAR Benchmarks by Hotel Segment
| Segment | Avg ADR | Avg Occupancy | Avg RevPAR |
|---|---|---|---|
| Economy | $65–$85 | 55–65% | $36–$55 |
| Midscale | $90–$120 | 60–70% | $54–$84 |
| Upper Midscale | $110–$150 | 65–75% | $72–$113 |
| Upscale | $150–$220 | 68–78% | $102–$172 |
| Upper Upscale | $200–$300 | 70–80% | $140–$240 |
| Luxury | $350–$700+ | 65–78% | $228–$546 |
| Boutique | $130–$300 | 60–75% | $78–$225 |
Key Hotel Revenue Formulas
- RevPAR = ADR × Occupancy Rate
- RevPAR = Total Room Revenue ÷ Total Available Rooms
- Occupancy Rate = Rooms Sold ÷ Rooms Available × 100
- ADR = Total Room Revenue ÷ Rooms Sold
- GOPPAR = Gross Operating Profit ÷ Available Rooms (profitability metric)
- TRevPAR = Total Revenue (incl. F&B, spa, parking) ÷ Available Rooms
Frequently Asked Questions
What is a good RevPAR?
RevPAR varies enormously by market and segment. A $50 RevPAR might be excellent for a rural economy hotel but poor for an urban upscale property. The most useful comparison is RevPAR Index (your RevPAR divided by your competitive set's RevPAR). An index above 100 means you are outperforming your comp set.
Should I prioritize higher ADR or higher occupancy?
The answer depends on your cost structure. Higher occupancy increases variable costs (housekeeping, amenities, utilities). A rate-focused strategy with slightly lower occupancy often yields better GOPPAR (profit per room). However, extremely low occupancy signals a pricing or demand problem. Most revenue managers target the occupancy sweet spot where the marginal cost of filling one more room equals the marginal revenue.
How does seasonality affect RevPAR?
Most markets see 20–40% RevPAR swings between peak and off-peak seasons. Resort destinations may see 50–70% variation. Effective revenue management adjusts ADR dynamically based on demand forecasts, day of week, local events, and booking pace. Hotels that maintain flat rates year-round leave significant revenue on the table during peak periods.