RevPAR vs ADR Growth Optimizer
Enter your current ADR, occupancy rate, and total rooms, then model a proposed rate change and occupancy shift to see the net impact on RevPAR and total revenue.
About this calculator
Model how changes in average daily rate (ADR) and occupancy trade off to affect RevPAR, so hotel revenue managers can find the optimal pricing strategy.
Frequently Asked Questions
What is RevPAR?
RevPAR (Revenue Per Available Room) equals ADR multiplied by occupancy rate. It's the standard metric hotels use to measure overall room revenue performance regardless of how many rooms are sold.
Why would raising rates lower RevPAR?
Higher rates can suppress demand and lower occupancy. If the occupancy drop outweighs the rate increase in percentage terms, RevPAR can actually decrease even though ADR went up.
How should I use this for pricing decisions?
Try different combinations of rate and occupancy changes to see which scenario maximizes total daily room revenue, then use that as a directional guide alongside market demand data and competitor pricing.