Hotel ADR Calculator

Average daily rate is total room revenue divided by rooms sold, so 100,000 of room revenue across 2,000 room nights gives an ADR of 50. That number ignores empty rooms entirely. Occupancy fills the gap: rooms sold divided by rooms available multiplied by the days in the period. RevPAR, revenue per available room, folds the two together by spreading revenue across every room night the hotel could have sold, filled or not. The relationship between them is exact rather than approximate. RevPAR is ADR multiplied by occupancy, which is why it never moves unless one of the other two does.

Take a 100-room hotel over a 30-day period. It has 3,000 room nights available. Sell 2,000 of them for 100,000 in room revenue and the three metrics separate: ADR of 50, occupancy of 66.67 per cent, RevPAR of 33.33. The same month's takings annualise to roughly 1.22 million, which is a straight scaling of the period rather than a forecast. Where operators disagree is which figure to move. Raising rates lifts ADR and usually costs occupancy; discounting does the reverse. RevPAR only improves when the combination does.

Benchmark ranges travel badly across markets. Occupancy and rate depend on city, season, star rating and how a property distributes its inventory, so a figure that reads as healthy in one market reads as underperformance in another. Eurostat's tourist accommodation statistics publish hotel occupancy country by country, and the gap between the strongest and weakest countries runs to tens of percentage points within the same year. The UN Tourism statistics database carries national accommodation and visitor series for countries and territories worldwide, though occupancy there has to be derived from capacity and nights spent rather than read off directly. A peer set drawn from the same market and season carries information that a global average does not.

Quick example

The default figures return an ADR of 50.00 against occupancy of 66.67 per cent. Two thirds of the inventory sold, so RevPAR comes out exactly a third below the rate: 33.33 against 50. That gap between ADR and RevPAR is the quickest read on how much of the hotel sat empty.

Which inputs matter most

Four figures drive everything on the card. Total Room Revenue and Rooms Sold (Total) set the ADR between them. Rooms Available and Days in Period build the denominator for occupancy and RevPAR, so a period length entered wrongly moves those two and leaves ADR untouched. Room revenue here means rooms only: food, beverage, spa and parking belong outside it, or the rate comes out flattered.

What's happening under the hood

Every output comes from the four inputs and nothing else. There is no adjustment for day-of-week pattern, cancellation, seasonal weighting or rate changes inside the period, so a month containing both a conference peak and a dead week reports the blended average and hides both. The annualised figure scales the period by 365 days on the assumption that nothing changes, which is why a peak month annualises high and a quiet one annualises low. Rooms sold above rooms available multiplied by days is rejected rather than calculated, since no property sells more room nights than it has.