👋 Revenue per Available Room (RevPAR) is a key metric for hotels to assess capacity utilization.
🏨 In our example, the hotel has 35 rooms, but 1 room is out of commission, leaving 34 available rooms.
💰 The hotel charges different rates:
📊 The occupancy percentage is calculated by dividing the 23 occupied rooms by the 34 available rooms, resulting in an occupancy rate of 68%.
📈 The Average Daily Rate (ADR) is calculated by dividing the total revenue of $1,990 by the 23 rooms sold, giving an ADR of $87.
🔍 RevPAR is calculated by multiplying the ADR by the occupancy rate: $87 (ADR) * 68% (occupancy) = $59.60 (RevPAR).
🙏 I hope this has been helpful! Thank you!