Question 1

Why are there two ways to calculate RevPAR?

Accepted Answer

Both methods yield the same result but use different source data. The first method (Total Revenue / Total Rooms) is a direct calculation from high-level financial reports. The second method (ADR x Occupancy) is useful for understanding the relationship between how full your hotel is and the rate you are charging.

Question 2

Is a higher RevPAR always better?

Accepted Answer

Generally, yes. A higher RevPAR indicates better performance. However, it's important to compare it to your competitors (in a RevPAR Index or RGI) and your budget. A high RevPAR achieved through extreme cost-cutting that hurts guest experience may not be sustainable.

Question 3

What is the difference between RevPAR and GOPPAR?

Accepted Answer

RevPAR only looks at rooms revenue. GOPPAR (Gross Operating Profit Per Available Room) is a more holistic metric that includes all revenue streams (F&B, spa, etc.) and subtracts the operational costs to show the actual profit per available room.

Question 4

How can I improve my RevPAR?

Accepted Answer

You can improve RevPAR by either increasing your occupancy rate (selling more rooms), increasing your Average Daily Rate (ADR), or both. Strategies include dynamic pricing, marketing promotions to fill rooms during off-peak times, and upselling to higher-priced rooms.

Question 5

Should I use RevPAR for my short-term rental or Airbnb?

Accepted Answer

Yes, absolutely. RevPAR is a standard and powerful metric for any lodging business. For a single property, you can calculate it for a month by taking your total rental income and dividing it by the number of nights in that month.

RevPAR Calculator

Method 1: By Revenue

Method 2: By ADR & Occupancy

Results

Understanding RevPAR

Frequently Asked Questions

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