Free tools · hotels
RevPAR is the number hotels are compared on, and it moves for two different reasons that pull against each other. Put a period's rooms revenue, rooms sold and available inventory in below and you get RevPAR, average daily rate and occupancy together, which is the only way to see which of the two is actually driving it.
The calculator
Nothing is sent anywhere — the maths runs in your browser and we never see what you type. Every field starts at a deliberately ordinary default rather than a flattering one.
Before you quote the figure at anyone
01
Every occupied room brings housekeeping hours, laundry, amenities, breakfast covers and wear with it, and none of that is in this figure. A hotel can grow RevPAR through discounting and end the month with less money, which is why profit per available room now sits alongside it in most operators' reporting.
02
A 30-night month against a 31-night month, or a month with a bank holiday against one without, are not comparable no matter how carefully the arithmetic is done. Year on year for the same period is the only comparison that means much, and even then a refurbishment or a new competitor changes what you are reading.
03
Food and beverage, spa, meetings and parking are often where the margin actually is, particularly for a property with a busy restaurant. Judging the business on rooms performance alone systematically undervalues the departments your team spends most of its energy on.
Questions
Getting a number you don’t recognise from your own accounts is usually worth a conversation rather than another spreadsheet.
Divide rooms revenue for a period by the number of available room nights, which is your total room inventory multiplied by the nights in the period. A 72-room hotel over 30 nights has 2,160 available room nights, so £84,000 of rooms revenue is a RevPAR of £38.89. The same answer comes from multiplying average daily rate by occupancy.
Average daily rate is revenue divided by the rooms you actually sold, so it only describes the rooms that were occupied. RevPAR divides by every room you had available, occupied or not, so it carries occupancy inside it. A hotel can have a strong ADR and a weak RevPAR simply by selling very few rooms at a high price.
There is no universal figure — it depends entirely on market, star rating, season and location, and a London property and a regional inn are not comparable on it. The useful benchmarks are your own same period last year and your competitive set, which is what a STR or benchmarking report exists to give you.
Include them. A room out of service is still capacity the business is carrying, and removing it from the denominator raises RevPAR without anything improving. Excluding them is sometimes done for a specific operational report, but if you do it, say so alongside the number or you will end up comparing it against periods calculated the other way.
Gross operating profit per available room applies the same per-room logic to profit rather than revenue, so it captures the cost of servicing the rooms you sold. It is the figure that exposes occupancy bought too cheaply, and the reason a revenue strategy judged on RevPAR alone can look successful while the P&L gets worse.
WHY Hospitality