The formula to calculate Revenue Per Available Room (RevPAR) is:
\[ RevPAR = ADR \times \left(\frac{OR}{100}\right) \]
Where:
RevPAR, or Revenue Per Available Room, is a key performance metric in the hotel industry. It measures the total revenue generated per available room, providing insights into how well a hotel is filling its rooms and at what rate. RevPAR is calculated by multiplying the Average Daily Rate (ADR) by the Occupancy Rate (OR). As more rooms are sold or the ADR increases, the RevPAR will also increase, reflecting improved performance.
Let's consider an example:
Using the formula to calculate RevPAR: