how to calculate revpar
there are two ways to calculate revpar first hotel management can take the total amount of room rent revenue and divide it by the total rooms available to have been rented note that the total rooms available includes rooms that were available but were not occupied for this calculation revpar total revenue number of rooms available begin aligned textbf revpar frac textbf total revenue textbf number of rooms available end aligned revpar number of rooms availabletotal revenue alternatively hotel management can calculate revpar by taking the average daily rate of revenue and multiply it by the occupancy rate this method is more appropriate and more accurate for fully occupied hotels with limited rooms that are unavailable as it is based on total occupancy not total availability revpar average daily rate occupancy rate begin aligned textbf revpar textbf average daily rate times textbf occupancy rate end aligned revpar average daily rate occupancy rate either formula returns a dollar amount that is theoretically lower than the actual actual daily rate as a hotel can not be or at least should not be occupied past 100 