RevPAR calculator

What RevPAR actually tells you

RevPAR is revenue per available room: what every room you own earned, whether or not anybody slept in it. That last part is the whole point. Occupancy ignores what you charged, and ADR ignores how many rooms sat empty — RevPAR refuses to ignore either, which is why it is the number to watch when you only have room for one.

An example that makes the difference obvious. Thirty-two rooms, thirty days, so 960 available nights. Sell 636 of them at ₱3,854 and you take ₱2.45 million — 66.3% occupancy, and RevPAR of ₱2,553. Now cut the rate to ₱2,900 and sell 800 nights instead. Occupancy jumps to 83%, which reads like a much better month; revenue is ₱2.32 million and RevPAR has fallen to ₱2,417. You worked harder, housekeeping worked much harder, and the property earned less.

Reading the three together

When RevPAR moves, the useful question is which half moved. There are only three answers worth acting on.

• Occupancy up, ADR flat or up. Demand is genuinely stronger. This is usually the moment to test a higher rate on your busiest dates rather than bank the win.
• Occupancy up, ADR down, RevPAR flat. You bought the occupancy. The property is busier, the costs are higher, and the money is the same — the worst of the three outcomes because it feels like the best.
• Occupancy down, ADR up, RevPAR up. Fewer guests paying more. Often the right trade at a small property, where each additional occupied room carries real cost in linen, water, power and staff hours.

Getting the inputs right

Room nights, not bookings

The most common mistake on this calculation is counting reservations instead of nights. One booking of a single room for four nights is four room nights. Twelve bookings averaging two nights each is twenty-four. If you take the booking count by mistake, occupancy comes out roughly a third of what it really is and every figure below it is wrong.

Rooms only, in the revenue

Leave out the restaurant, the bar, the island tours, the airport transfers and the laundry. They belong in TRevPAR, not here. Mixing them in inflates RevPAR and — worse — hides the thing you were trying to measure, because a good month in the kitchen will paper over a bad month in the rooms.

Pick a definition of available and keep it

Two rooms out for repainting can be counted as available or excluded, and reasonable operators do both. What matters is that you do the same thing every month. A definition that quietly changes is how a property convinces itself it is improving.

Questions, answered

What is a good RevPAR for a Philippine hotel?

There is no useful national figure, because a beachfront resort in Boracay and an inland budget hotel are not in the same business. RevPAR is worth measuring against your own last twelve months and against the same month last year — that comparison tells you something; a national average does not.

Should RevPAR include food and beverage revenue?

No. RevPAR is rooms only. If you want the whole property including restaurant, bar and services, that measure is TRevPAR — total revenue per available room — and it is a different number for a different question.

Why is RevPAR better than occupancy on its own?

Because occupancy can be bought. Drop your rate far enough and you will fill the property while earning less than you did half empty. RevPAR moves only when rate and occupancy together produce more money per room you own, which is the thing you actually want to go up.

Do out-of-order rooms count as available?

Strictly, no — a room being renovated is not sellable and most operators exclude it. Whichever way you decide, keep it consistent, because a definition that changes between months makes the trend meaningless.