The three formulas
- Occupancy rate = rooms sold ÷ rooms available
- ADR (average daily rate) = room revenue ÷ rooms sold
- RevPAR (revenue per available room) = room revenue ÷ rooms available, or ADR × occupancy
ADR divides by the rooms you sold; RevPAR divides by every room you had. That one difference is why a nearly empty hotel with one expensive suite booked can show a magnificent ADR and almost no income — and why owners reach for RevPAR first.
Frequently asked questions
Should I enter revenue before or after tax?
Before — net room revenue, excluding GST or VAT. Otherwise your ADR moves when the tax
rate moves rather than when your pricing does. Leave food and bar income out too.
What do I enter for a whole month?
Rooms and nights separately. Twenty-four rooms across 30 nights is 720 available
room-nights, which the calculator works out for you.
Do I include rooms that are out of order?
Convention keeps them in: a room under renovation is still a room earning nothing, and a
steady denominator is what makes months comparable. Either choice works, as long as it is
the same one every month.
What is a good RevPAR?
There is no universal figure — it depends on market, season and currency. Compare your
property against itself: this month against the same month last year.
Does Zitlin calculate these automatically?
Yes. The occupancy report for any date shows total rooms, rooms occupied, occupancy,
arrivals and departures, ADR and RevPAR, with the nightly postings underneath so you can
see which prices the averages were built from.