How to Calculate RevPar or revenue per available room

Definition, Formula and example to calculate RevPar - Hotel

[faisalnazar]

Hi I just want to clarify, When you say Number of rooms available, Does it mean all the rooms in the hotel, Including, blocked rooms, occupied rooms?

[hotelsalesrevenuemanagemen]

Hi Faisal, Number of rooms available is total inventory minus out of order rooms, so if you have 100 rooms in the hotel but only 90 rooms are occupied and 5 rooms were off market for maintenance work, based on hotel generates £10, 000 accommodation revenue that night, you Rev par will be £10, 000 / 100 -5 = £105.26. and ARR is £10, 000/90 = £111.11

It's up to the hotel to calculate Rev Par in Gross or Nett.

I hope this answers your question but please feel free to ask if you have any more.