HOTELS GUIDE

Hotel ADR vs RevPAR

ADR measures room rate on occupied rooms, while RevPAR measures room revenue across all available rooms.

What the analysis measures

ADR equals room revenue divided by rooms sold. RevPAR equals room revenue divided by available rooms, or ADR multiplied by occupancy.

A hotel can raise ADR while losing enough occupancy for RevPAR to decline. Review both metrics rather than treating rate growth as revenue growth.

Keep taxes, resort fees, complimentary rooms and out-of-order inventory consistent across periods and comparable hotels.

Use RevPAR to build room revenue, then add other departments and deduct operating costs. Neither metric measures profitability by itself.

CLEAR ANSWERS

What does “Hotel ADR vs RevPAR” explain?

ADR measures room rate on occupied rooms, while RevPAR measures room revenue across all available rooms.

Which assumptions matter most?

Review the inputs connected to ADR vs RevPAR, hotel metrics, room revenue and test them together rather than one at a time.

Should I use a calculator or a full model?

Use a calculator for a fast screening result and a full model when timing, financing, operating detail and sensitivities affect the decision.

Can this guide replace professional advice?

It is educational and does not replace deal-specific investment, accounting, tax, legal or lending advice.

Are the linked tools free?

All calculators and guides are free. Full Excel models are priced individually and as a complete library.