Calculation formula of revpar

The calculation formula of RevPar: RevPar= total room income/total number of rooms. RevPar= actual average house price × occupancy rate. Occupancy rate = total number of rooms for rent/total number of rooms. Actual average house price = total room income/total number of rooms for rent.

The concept of revenue per room is used as the basis for measuring and analyzing hotel performance. RevPar is a widely used measure in the international hotel industry, which reflects the room income generated by each room, so it can measure the success of hotel room inventory management.

There will also be a comprehensive Revpar indicator in the industry. Because 90% of the hotel chain's income comes from rooms, it also uses a RevPAR index: comprehensive RevPAR, which is used to measure the comprehensive income of hotel rooms and non-rooms, and to measure the comprehensive income capacity of hotel rooms. It is often used to evaluate the performance of hotel chain managers.

Formula conclusion:

Undeniably, the goal of hotel managers is to maximize RevPar through the improvement of room occupancy rate and average house price, because room income does account for a large proportion of total hotel operating income.

Generally speaking, 50%-65% of the total revenue of a three-star hotel providing full-service comes from rooms. In budget hotels or long-stay hotels with limited ancillary services (mainly catering services), up to 90% of the income comes from rooms.

Reference to the above content: Baidu Encyclopedia -RevPAR