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ADR & RevPAR (hotel revenue) calculator

Average daily rate and revenue per available room for a lodging property.

Published 9 August 2026 · Updated 22 September 2026

What this calculator does

Hotels are measured on two numbers that pull against each other. Average daily rate is what each occupied room earns, and occupancy is what share of rooms sold. RevPAR multiplies them, which is why it is the figure that actually matters.

The trade-off is exact. Selling 200 rooms at $225 and selling 380 rooms at $118.42 produce the identical RevPAR of $112.50, because the same revenue came from the same building. Rate and occupancy can be traded freely; only revenue per available room tells you whether the trade was worth making.

The formula

FormulaADR = Room revenue / Rooms sold; Occupancy = Rooms sold / Rooms available; RevPAR = ADR × Occupancy

Average daily rate divides room revenue by rooms sold. Occupancy divides rooms sold by rooms available. RevPAR is the product of the two, which also equals revenue divided by rooms available.

TermMeaning
ADRAverage daily rate: revenue per occupied room.
OccupancyThe share of available rooms that were sold.
RevPARRevenue per available room, counting empty rooms as well as full ones.

The inputs explained

FieldWhat to enter
Total room revenue ($)Total room revenue for the period.
Rooms soldNumber of rooms actually sold.
Rooms availableNumber of rooms available to sell.

When to use it

Assessing a pricing decision

Discounting lifts occupancy but cuts rate, and RevPAR says whether the net effect helped.

Comparing properties of different sizes

RevPAR normalises for room count in a way total revenue cannot.

Benchmarking against a competitive set

The three figures together are the standard language of hotel performance reporting.

Worked examples

Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.

How do rate and occupancy trade off?

The same revenue earned three different ways.

$45,000 room revenue, 400 rooms available
Rooms soldADR (average daily rate)Occupancy rate
200 rooms$225.0050.0%
300 rooms$150.0075.0%
380 rooms$118.4295.0%
RevPAR is $112.50 in every row. Selling 200 rooms requires an ADR of $225.00 at 50.0 per cent occupancy; selling 380 rooms needs only $118.42 at 95.0 per cent. The building earned the same either way.

Questions

Why is RevPAR preferred to ADR?

Because ADR ignores empty rooms. A property can post a spectacular rate by selling three suites and leaving the rest dark. RevPAR counts the whole building, which is what the owner actually paid for.

Is high occupancy always good?

No. Occupancy near 100 per cent often means the rate was set too low, since there was clearly demand that would have paid more. Most operators target a balance rather than a full house.

What does RevPAR leave out?

Everything that is not room revenue, and all costs. A property with strong food, beverage and events income may perform well on total revenue while looking ordinary on RevPAR, which is why TRevPAR and GOPPAR also exist.

Why does RevPAR equal revenue divided by rooms available?

Because the rooms-sold term cancels. ADR is revenue over rooms sold, occupancy is rooms sold over rooms available, so multiplying leaves revenue over rooms available. The calculator shows both routes as a check.

For yield on the property itself, see the cap rate calculator. For the margin the operation earns, see the operating margin calculator.