Hotel RevPAR
Build a hotel’s revenue from rooms, occupancy and room rate, then show how its fixed costs turn a small change in occupancy into a large change in operating profit.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Rooms, occupancy and room rate
The number of rooms, the share occupied on average, and the average rate per occupied room night. Occupancy × rate is RevPAR.
- Food, beverage and other revenue
Restaurants, banquets, weddings and other income as a percentage of room revenue. For many Indian hotels this is large.
- Variable and fixed costs
Costs that rise with revenue, such as commissions and consumables, as a percentage; and costs paid regardless, such as staff, upkeep and energy, in ₹ crore a year.
Worked example: Five points of occupancy
An owner of city hotels has 1,000 rooms at 70% occupancy and ₹9,000 a night, food and beverage worth 60% of room revenue, variable costs of 30% and fixed costs of ₹180 crore.
What to enter
- Rooms
- 1,000
- Occupancy
- 70%
- Average room rate
- ₹9,000 / night
- Food, beverage and other revenue
- 60% of rooms
- Variable costs
- 30% of revenue
- Fixed costs
- ₹180 Cr / yr
What it shows you
- RevPAR
- ₹6,300
- Room revenue
- ₹229.95 Cr
- Total revenue
- ₹367.92 Cr
- EBITDA
- ₹77.54 Cr
- EBITDA margin
- 21.1%
- EBITDA at +5 pts occupancy
- ₹95.94 Cr
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
- Fundamental Analysis12 minHotels: the room that earns nothing if it stays empty tonightA hotel room unsold tonight can never be sold again, and most of a hotel’s costs are paid whether the room is full or not. How to read occupancy, the average room rate and RevPAR, why a few points of occupancy move profit so much, how owned, leased and managed hotels differ, and what the room supply cycle means for the next few years.
- Fundamental Analysis12 minHospitals: sold by the occupied bed, day by dayA hospital’s revenue is beds, times the share of them occupied, times what each occupied bed earns a day. How to read occupancy, ARPOB and length of stay, why the mix of cash, insured and government-scheme patients moves margins, why a new hospital drags on profits for years before it matures, and how hospital chains choose between owning buildings and running them for others.