How to Calculate RevPAR (Revenue per Available Room)

Short answer: RevPAR (revenue per available room) is calculated by dividing room revenue by the number of rooms available in a period: RevPAR = room revenue ÷ rooms available. The same result comes from RevPAR = ADR × occupancy rate. It tells you how much room revenue each room in your inventory earned, whether that room was sold or stayed empty.

RevPAR is the single most widely used performance metric in the hotel industry, because it combines price and occupancy in one number. In this guide you will find the correct formula based on USALI (the Uniform System of Accounts for the Lodging Industry), step-by-step examples in Uzbek sum (UZS), common mistakes, how RevPAR relates to ADR, occupancy and GOPPAR, and how a hotel PMS such as uMehmon calculates it automatically.

What is RevPAR and why does it matter?

RevPAR answers a simple question: how well did we monetise our whole room inventory? Occupancy alone tells you how full the hotel was, but not at what price. ADR (average daily rate) tells you the price, but not how many rooms stayed empty. RevPAR joins both perspectives.

Imagine two hotels in Samarkand with the same number of rooms. One sells rooms at a high price but stays half empty. The other sells cheaper but is almost full. Which one performed better? Looking at ADR or occupancy alone gives opposite answers. RevPAR gives one comparable figure.

That is why owners, general managers, revenue managers and investors look at RevPAR first. It is used to:

• track the performance of a single property over time;
• compare properties of different sizes (because it is calculated per room);
• evaluate pricing decisions, such as raising or lowering rates for a season;
• judge the result of distribution changes, for example connecting a new channel through a channel manager;
• set targets for the team and budget for the year.

What RevPAR does not show

RevPAR is a revenue metric, not a profit metric. It does not include restaurant, spa, laundry or transfer revenue, and it ignores costs completely. A hotel can raise RevPAR by paying higher OTA commissions or spending heavily on marketing and still earn less money. That is why RevPAR should always be read together with cost-aware metrics such as GOP and GOPPAR, which we cover below.

The RevPAR formula (USALI-correct)

There are two equivalent formulas. Both are correct under USALI definitions.

Why are the two RevPAR formulas identical? Because ADR × occupancy = (room revenue ÷ rooms sold) × (rooms sold ÷ rooms available). "Rooms sold" cancels out and you are left with room revenue ÷ rooms available.

What counts as "rooms available"?

Rooms available is the number of rooms in the inventory multiplied by the number of nights in the period. A 40-room hotel has 40 rooms available per night and 1,200 room-nights available in a 30-day month.

A practical rule: do not quietly remove rooms from the denominator to make numbers look better. Rooms that are temporarily out of order (for a short repair) are usually still part of the inventory, and removing them inflates both occupancy and RevPAR. If a room is permanently closed or converted to an office, it is reasonable to exclude it. Whatever rule you choose, apply it consistently from month to month.

What counts as "room revenue"?

Room revenue is net accommodation revenue:

• include the room rate actually charged, day-use and late check-out charges that relate to the room, and early departure or no-show fees if your accounting treats them as room revenue;
• exclude VAT, tourist tax and other taxes;
• exclude breakfast, restaurant, minibar, laundry, transfers, excursions and other services;
• exclude deposits for future stays that have not happened yet.

If you sell a package that includes breakfast, separate the breakfast value from the room price before you calculate RevPAR. Otherwise your RevPAR will look higher than your actual room performance.

Worked examples in UZS

All numbers below are illustrative examples, not market data.

Example 1: one night

Example: a 20-room guest house in Bukhara sells 14 rooms tonight. Net room revenue for the night is 8,400,000 UZS.

• Rooms available = 20 × 1 = 20
• Occupancy = 14 ÷ 20 = 70%
• ADR = 8,400,000 ÷ 14 = 600,000 UZS
• RevPAR = 8,400,000 ÷ 20 = 420,000 UZS
• Check: 600,000 × 0.70 = 420,000 UZS

Example 2: a full month

Example: a 40-room hotel in Tashkent, 30-day month.

• Rooms available = 40 × 30 = 1,200 room-nights
• Rooms sold = 840 room-nights
• Net room revenue = 504,000,000 UZS
• Occupancy = 840 ÷ 1,200 = 70%
• ADR = 504,000,000 ÷ 840 = 600,000 UZS
• RevPAR = 504,000,000 ÷ 1,200 = 420,000 UZS

Notice that the monthly RevPAR is not the average of 30 daily RevPARs weighted in a random way. Always sum revenue and sum rooms available for the whole period, then divide once.

Example 3: price vs occupancy

Example: two 30-room hotels, same city, same month (900 room-nights available each).

Hotel B earns more room revenue per available room even though its price is lower. But this is not the end of the story: selling more rooms also means more cleaning, more laundry, more amenities and possibly more OTA commission. That is why the next step after RevPAR is to look at GOPPAR.

Example 4: GOPPAR on top of RevPAR

Example: the 40-room hotel from Example 2 has total revenue (rooms plus other departments) of 560,000,000 UZS and operating expenses of 380,000,000 UZS in the month.

• GOP = 560,000,000 − 380,000,000 = 180,000,000 UZS
• GOPPAR = 180,000,000 ÷ 1,200 = 150,000 UZS

RevPAR of 420,000 UZS tells you how well you sold rooms; GOPPAR of 150,000 UZS tells you how much operating profit each available room produced.

Example 5: a hostel

Example: a hostel with 6 dorm rooms of 8 beds each (48 beds), 30-day month.

• Bed-nights available = 48 × 30 = 1,440
• Bed-nights sold = 1,008
• Bed revenue = 120,960,000 UZS
• Occupancy (by beds) = 1,008 ÷ 1,440 = 70%
• Average rate per bed = 120,960,000 ÷ 1,008 = 120,000 UZS
• Revenue per available bed = 120,960,000 ÷ 1,440 = 84,000 UZS

If you counted rooms instead of beds, a dorm room with a single guest would look "occupied" and your numbers would be badly distorted. In hostel mode, uMehmon counts occupancy by beds, so these metrics are based on bed-nights automatically. Read more in our hostel management software overview.

RevPAR vs ADR vs occupancy vs GOPPAR

A useful habit: whenever RevPAR changes, ask why. Break the change into its occupancy part and its ADR part. If RevPAR grew only because you dropped prices and filled more rooms, check whether your costs grew even faster. If RevPAR fell because occupancy dropped while ADR stayed flat, the problem may be distribution or visibility rather than price. Our detailed guides on ADR and hotel occupancy go deeper into each component.

Questions and answers

Q: Can RevPAR ever be higher than ADR? A: No. Since RevPAR = ADR × occupancy and occupancy cannot exceed 100%, RevPAR is at most equal to ADR. They are equal only on a night when every available room is sold.

Q: Should I calculate RevPAR per room type? A: Yes, it is very useful. Calculate it with the revenue and inventory of one room type only. You may find that suites have high ADR but weak RevPAR because they rarely sell.

Q: My daily RevPAR jumps up and down. Is that a problem? A: Not necessarily. Weekday vs weekend and events cause natural swings. Look at 7-day or monthly figures for trends, and use daily figures for operational decisions.

Q: Does a day-use booking count as a room sold? A: Practices differ. Many hotels keep day-use revenue in room revenue but do not count it as an extra room-night sold, because the room is also sold for the night. Pick one rule and keep it consistent; uMehmon shows hourly revenue as a separate indicator so you can see its contribution clearly.

How to use RevPAR to make decisions

A number is only useful if it changes what you do. Here are practical ways to use RevPAR in a small or mid-sized hotel.

1. Set a monthly target and track pace

Multiply your RevPAR target by rooms available to get a room revenue target. For the 40-room hotel with a 450,000 UZS RevPAR target in a 30-day month, the room revenue target is 450,000 × 1,200 = 540,000,000 UZS. Check weekly whether you are on pace.

2. Decide between price and volume

If occupancy is already high on certain dates, raising the rate usually improves RevPAR more than chasing a few more bookings. If occupancy is low, a targeted offer or a new channel may help more than a price cut across the board. uMehmon lets you set a price range (minimum and maximum) per booking, and rates outside that range need a manager's approval, which protects ADR from uncontrolled discounting.

3. Evaluate channels honestly

Revenue from OTAs looks good in RevPAR, but commissions are an expense. Watch the share of direct, OTA and corporate bookings, which uMehmon shows in the Finance report, and compare it with GOPPAR. If you are connecting Booking.com, our guide on how to connect Booking.com explains the options.

4. Look at the whole calendar

The tape chart (room rack) in a PMS shows free nights at a glance. Gaps of one night between two stays are hard to sell and reduce RevPAR. Moving a booking to another room (drag and drop on the tape chart) can open a longer free period that is easier to sell.

5. Watch cancellations and no-shows

A high cancellation rate means your "on the books" RevPAR is not reliable. Track cancellations % and no-shows, and consider prepayment for peak dates.

Common RevPAR mistakes

1. Including VAT or tourist tax in room revenue.
2. Including breakfast or other services in room revenue.
3. Using rooms sold in the denominator (that gives ADR, not RevPAR).
4. Removing out-of-order rooms from inventory to flatter the result, and changing that rule month to month.
5. Averaging daily RevPARs instead of dividing total revenue by total rooms available.
6. Comparing periods of different length or with different inventory.
7. Counting rooms instead of beds in a hostel.
8. Treating RevPAR as profit and ignoring costs.

Pros and cons of RevPAR as a KPI

Pros

• Combines price and occupancy in one number.
• Comparable across hotels of different sizes.
• Simple formula based on USALI definitions, understood by owners and investors.
• Quickly shows the effect of pricing and distribution decisions.

Cons and limitations

• Ignores costs, so it can reward unprofitable growth.
• Ignores non-room revenue such as restaurant and services.
• Sensitive to how you define inventory and room revenue.
• Hides the mix: the same RevPAR can come from very different ADR and occupancy combinations.
• Not directly comparable between a hostel (beds) and a hotel (rooms).

Manual calculation vs spreadsheets vs a PMS

How uMehmon calculates RevPAR automatically

uMehmon is a cloud hotel PMS built for hotels, hostels, apart-hotels and guest houses in Uzbekistan. Because bookings, check-ins, folios, the cash desk and expenses all live in one system, RevPAR is calculated from real transactions rather than from a spreadsheet someone forgot to update.

In the Finance report you see about 24 USALI-based indicators, including:

• room revenue, cash received and expenses;
• GOP and GOP margin;
• Occupancy, ADR, RevPAR and GOPPAR;
• room-nights sold, ALOS (average length of stay), new bookings and arrivals;
• lead time, cancellations %, direct, OTA and corporate share, average discount;
• hourly revenue and collection rate.

Each indicator is compared with the previous period, so you immediately see whether RevPAR went up or down and whether ADR or occupancy caused the change. Daily charts and revenue sources help you find the dates and channels behind the trend. In hostel mode, occupancy and related metrics are based on bed-nights, so a dorm with one guest is not counted as a fully sold room.

Other features that directly support RevPAR:

• Tape chart with 7/14/30/60-day views and daily statistics (occupied, free, arrivals, departures, occupancy %).
• Price range per room with manager approval for rates outside the range.
• Channel manager: two-way iCal sync with Booking.com and Expedia today, with the Booking.com Connectivity API available for certified accounts. Incoming bookings are placed in a free room automatically, and overbooking warnings appear if none is free.
• Housekeeping statuses, so clean rooms are sold again on the same day after a departure.
• Expense categories in the cash desk, which feed GOP and GOPPAR.

For more on reports and dashboards, see our hotel analytics page. If you are thinking about automated pricing, read what dynamic pricing is: uMehmon does not yet include an automatic dynamic pricing engine (it is on the roadmap), but the price range and analytics give you the data to adjust rates yourself.

Conclusion

RevPAR is room revenue divided by rooms available, or ADR multiplied by occupancy. Calculate it with net room revenue, a consistent inventory and the same period for every input. Then always ask what drove the change, and check GOPPAR to make sure revenue growth turns into profit.

Doing this by hand every month is slow and error-prone. uMehmon calculates RevPAR, ADR, Occupancy, GOPPAR and other USALI indicators automatically, with previous-period comparison and bed-night logic for hostels. Start a 14-day free trial and see your own RevPAR today.