Most Popular Formulas

Rezidor-52-Europe-Hotel-Performance

Average Daily Rate (ADR) or Average Room Rate (ARR)

Formula: Room revenue gross / Total occupied rooms

The difference between the two is that ADR (Average Daily Rate) is calculated for ONE day while ARR (average room rate) is calculated for a certain period of time (week, month, year).

Yield calculation

Formula: Room revenue gross / highest possible revenue * 100%

A) Formula = ADR x number of rooms sold

     Example = € 110 x 55 rooms sold = € 6050 (Room revenue gross)

B) Calculate the Yield percentage (highest potential revenue percentage)

    Formula = Room revenue gross / highest possible revenue

    Example = € 6050 / € 15000 *100% = 40,33%

Highest possible revenue is calculated considering all available rooms * highest possible rate applied by the hotel. In the example above: the total amount of available rooms is 100 while the highest rate charged is € 150.

Revenue Per Available Room (RevPAR)

Two formulas:

1. Formula RevPAR: room revenue gross/ total rooms available

2. Formula RevPAR: occupancy * ADR

Occupancy

Formula : total occupied rooms / total available rooms * 100%

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