# RevPAR explained, formula, worked examples and 2026 benchmarks

> What RevPAR is, how to calculate RevPAR with worked examples, how it differs from ADR, occupancy and GOPPAR, and real 2025 benchmarks from CoStar and MKG.

By Gabriel Toledano, CEO and co-founder of Hikoo. Updated 2026-10-28. Hotel Software Compared, https://hotelsoftwarecompared.com/en/revpar

## Key takeaways

- RevPAR (revenue per available room) is rooms revenue divided by rooms available, which is the same as ADR multiplied by occupancy.
- U.S. hotels averaged a RevPAR of $100.02 in 2025, with 62.3% occupancy and a $160.54 ADR, according to CoStar. French hotels averaged €84.0 excl. VAT on MKG data.
- In August 2026, CoStar and Tourism Economics raised their 2026 U.S. forecast to RevPAR growth of 4.4%.
- RevPAR ignores costs and non-room revenue, so read it next to TRevPAR and GOPPAR before judging profitability.
- The main levers are pricing to demand, length-of-stay controls, upselling and being visible where guests now search, including AI assistants.

RevPAR, or revenue per available room, is a hotel's rooms revenue divided by the number of rooms available for sale over a period. It also equals the average daily rate (ADR) multiplied by occupancy. A 100-room hotel that earns $9,000 in room revenue on one night has a RevPAR of $90. In 2025, U.S. hotels averaged $100.02, according to CoStar.

This guide shows how to calculate RevPAR step by step, how it relates to ADR, occupancy, TRevPAR and GOPPAR, and what the latest sourced benchmarks say for the US and France.

## What is RevPAR?

RevPAR measures how much room revenue a hotel earns for every room it could have sold, whether the room was occupied or not. It is the industry's main top-line indicator because it combines price and volume in one number.

Rooms revenue means accommodation revenue only, net of VAT or sales tax. Breakfast, restaurant, spa, parking and meeting rooms stay out. Available rooms count every room in inventory for each night of the period.

Two details change the result. Rooms taken out of order for renovation and complimentary stays are handled differently by different benchmark providers, so check the rule your benchmark uses and apply the same one every month.

## How do you calculate RevPAR?

There are two equivalent formulas, rooms revenue divided by rooms available, or ADR multiplied by the occupancy rate. Both give the same answer when they use the same period and the same room counts.

| Metric | Formula | What it tells you |
|---|---|---|
| Occupancy rate | Rooms sold ÷ rooms available | How full the hotel is |
| ADR | Rooms revenue ÷ rooms sold | Average price paid per occupied room |
| RevPAR | Rooms revenue ÷ rooms available, or ADR × occupancy | Room revenue per room in inventory |
| TRevPAR | Total revenue ÷ rooms available | All revenue per room, including F&B, spa and parking |
| GOPPAR | Gross operating profit ÷ rooms available | Operating profit per room |
| RGI (RevPAR index) | Your RevPAR ÷ comp set RevPAR × 100 | Your share against direct competitors |

### Worked example for one night

A 40-room hotel sells 32 rooms on a Saturday at an average of €150, so rooms revenue is €4,800.

- Occupancy is 32 ÷ 40 = 80%.
- ADR is €4,800 ÷ 32 = €150.
- RevPAR is €4,800 ÷ 40 = €120, or €150 × 80% = €120.

### Worked example for a month

Over a 30-day month, the same hotel has 1,200 available room nights (40 rooms × 30 nights). It sells 840 room nights for €100,800 of rooms revenue.

- Occupancy is 840 ÷ 1,200 = 70%.
- ADR is €100,800 ÷ 840 = €120.
- RevPAR is €100,800 ÷ 1,200 = €84.

That €84 sits right on the French national average for 2025, which was €84.0 excl. VAT on MKG data quoted by [CBRE](https://mktgdocs.cbre.com/2299/c3a12f08-1fb2-4222-80fc-5932211582c1-1595260253/CBRE_Figures_H_tels_France_T4_.pdf).

The most common mistake is to divide by rooms rather than room nights over a period. Divide €100,800 by 40 rooms and you get €2,520, a monthly revenue per room that no benchmark will match.

## How do you calculate the hotel occupancy rate?

Hotel occupancy rate is rooms sold divided by rooms available, multiplied by 100. A 60-room hotel that sells 45 rooms on a night runs at 75% occupancy.

Over a period, use room nights on both sides. A 60-room hotel has 1,860 available room nights in a 31-day month, and if it sells 1,302 of them, occupancy is 70%.

Occupancy alone can mislead. Filling the hotel with discounted rates lifts occupancy and can lower RevPAR, which is why revenue managers read occupancy, ADR and RevPAR together.

## RevPAR vs ADR vs occupancy, what is the difference?

Occupancy measures volume, ADR measures price and RevPAR combines the two. Two hotels can post the same RevPAR with opposite strategies.

| | Hotel A, volume strategy | Hotel B, rate strategy |
|---|---|---|
| Rooms | 100 | 100 |
| Rooms sold | 90 | 60 |
| ADR | €100 | €150 |
| Occupancy | 90% | 60% |
| Rooms revenue | €9,000 | €9,000 |
| RevPAR | €90 | €90 |

Hotel B earns the same room revenue with 30 fewer rooms to clean, fewer amenities to replace and fewer bookings paying OTA commission. Its profit is likely higher, yet RevPAR shows no difference. That gap is what TRevPAR and GOPPAR are for.

## What are TRevPAR and GOPPAR?

TRevPAR (total revenue per available room) adds every revenue stream, rooms, food and beverage, spa, parking and meeting space, then divides by available rooms. GOPPAR (gross operating profit per available room) divides gross operating profit by available rooms. Together they answer the question RevPAR leaves open, whether the hotel makes money.

Gross operating profit is total revenue minus departmental costs and undistributed operating expenses such as administration, sales and marketing, maintenance and energy. Because GOP is total revenue times the GOP margin, GOPPAR also equals TRevPAR multiplied by that margin.

Margins vary a lot by region. HotStats data for European hotels showed a GOP margin of about 37% for the first eleven months of 2025, with Southern Europe near 42% and Western Europe near 33%, according to a [Duetto and HotStats release](https://www.hospitalitynet.org/news/4130520/duetto-and-hotstats-spotlight-the-shift-from-revenue-to-profit-at-fitur-2026).

Worked example: a hotel with €84 RevPAR, €110 TRevPAR and a 35% GOP margin has a GOPPAR of €38.50 (€110 × 35%).

Some revenue managers also track net RevPAR, which subtracts distribution costs such as OTA commissions from rooms revenue before dividing. It shows the value of shifting bookings to direct channels, which standard RevPAR cannot see.

## What is a good RevPAR in 2026?

A good RevPAR is one that beats your competitive set and your own result for the same period last year. Absolute levels swing with location, class and season, so national averages are a frame of reference, not a target.

| Market (source) | Year | Occupancy | ADR | RevPAR |
|---|---|---|---|---|
| United States (CoStar) | 2025 | 62.3% | $160.54 | $100.02 |
| New York City (CoStar) | 2025 | 84.1% | $333.71 | $280.71 |
| France, all hotels (MKG, via CBRE) | 2025 | 66.2% | €126.9 | €84.0 |
| France, all hotels (In Extenso) | 2025 | 64% | €133 | €85 |
| Paris (In Extenso) | 2025 | 82% | €239 | €195 |
| Côte d'Azur (In Extenso) | 2025 | 68% | €226 | €154 |

U.S. RevPAR slipped 0.3% in 2025, the first full-year decline in occupancy and RevPAR since 2020, [according to CoStar](https://www.costar.com/products/str-benchmark/resources/press-releases/us-hotels-report-first-full-year-occupancy-revpar). Among the top 25 markets, Las Vegas fell hardest, with RevPAR down 10.9% to $149.13, while San Francisco rose 11.8% to $155.84.

The outlook improved during 2026. In August, CoStar and Tourism Economics raised their 2026 U.S. forecast to RevPAR growth of 4.4%, with ADR up 3.1% and occupancy at 63.1%, after a strong first half, as [reported by Hotel Dive](https://www.hoteldive.com/news/costar-tourism-economics-raise-us-hotel-performance-outlook-2026/827318/).

In France, MKG data shows RevPAR up 1.4% in 2025 to €84.0, a record level with slower growth, according to CBRE. Upscale hotels did best, with RevPAR up 5.4%, while budget and economy hotels cut prices to hold occupancy.

In Extenso's 2025 review, [reported by TourMaG](https://www.tourmag.com/Bilan-2025-le-chiffre-d-affaires-de-l-hotellerie-francaise-a-progresse-de-2_a130416.html), puts the national figure at €85 with 64% occupancy. The two French sources use different hotel samples, so pick one and compare yourself with it consistently.

## How can a hotel increase RevPAR?

RevPAR rises when you sell more of your rooms at better prices, so the levers act on forecasting, pricing, inventory and visibility. Start with your RGI to see whether price or occupancy is the weak side against your comp set.

### Price to demand, not to the calendar

Set rates by day of week, lead time and local events rather than fixed seasons. A revenue management system or the pricing tools built into many PMS update rates daily. Our [hotel PMS comparison](/en/best-hotel-pms) shows which systems include revenue management.

### Control length of stay on peak nights

A minimum stay on a sold-out Saturday can fill the Friday or Sunday next to it. Closed-to-arrival rules do the same on nights when you expect to sell out anyway.

### Upsell the room, then the stay

Room upgrades sold before arrival raise ADR, and so RevPAR. Packages with breakfast, parking or spa raise TRevPAR, which is the better measure of what the guest spends.

### Keep every room sellable

A room out of order on a peak night is lost revenue. Fast housekeeping turnaround and planned maintenance in low season protect inventory when demand is high.

### Be visible where guests now search

Demand starts earlier than the booking engine. Deloitte's [2026 summer travel survey](https://www.deloitte.com/us/en/about/press-room/deloitte-as-rising-costs-slow-summer-travel-to-six-year-low-travelers-plan-to-spend-more.html) found that adoption of generative AI to plan travel reached 25% in 2026, up from 15% in 2025, and Google started rolling out [hotel booking in AI Mode](https://techcrunch.com/2026/08/27/googles-ai-mode-can-now-track-flight-prices-help-book-hotels-and-more/) in the US in August 2026.

If ChatGPT, Gemini or AI Mode never name your hotel, you lose demand before pricing can work on it. Our comparison of the [best GEO tools for hotels](/en/best-geo-tools-for-hotels) covers the software that measures this.

## What are the limits of RevPAR?

RevPAR is a revenue indicator, not a profit indicator. It ignores labour, energy and commission costs, and it leaves out every revenue line outside rooms.

It also reacts to supply. A hotel that adds 20 rooms will usually see RevPAR dip until demand catches up, even if total revenue grows. And it only compares well across similar hotels, so a budget hotel and a palace in the same city should each be judged against their own comp set.

Read RevPAR with occupancy and ADR to understand how it moved, and with TRevPAR and GOPPAR to understand whether it paid off.

## Frequently asked questions

### What is the RevPAR formula?

RevPAR equals rooms revenue divided by the number of rooms available in the period. It also equals ADR multiplied by the occupancy rate, and both formulas give the same result when they use the same period and room counts. For a month, count available room nights, so a 40-room hotel has 1,200 in a 30-day month.

### What is the difference between RevPAR and ADR?

ADR is the average price paid per occupied room, so it only looks at rooms you sold. RevPAR spreads rooms revenue over every room you could have sold, occupied or not. A hotel can raise ADR and still lose RevPAR if occupancy falls faster than the rate rises.

### What is a good RevPAR for a hotel?

A good RevPAR is one that beats your competitive set and your own figure for the same period last year. National averages help as a frame, for example $100.02 in the US in 2025 according to CoStar and €84.0 excl. VAT in France on MKG data. Location, class and season matter more than any single national number.

### Does RevPAR include taxes and breakfast?

RevPAR normally uses rooms revenue only, net of VAT or sales tax and without breakfast, food and beverage, spa or parking. When breakfast is included in the rate, many hotels allocate part of the price to food and beverage so RevPAR reflects the room alone. Whatever rule you choose, apply it the same way every month.

### What is RGI in hotels?

RGI, or RevPAR index, compares your RevPAR with the average of your competitive set. It equals your RevPAR divided by the comp set RevPAR, multiplied by 100. A score above 100 means you capture more than your fair share of revenue.

### How do you calculate the hotel occupancy rate?

Divide the rooms sold by the rooms available and multiply by 100. A 60-room hotel that sells 45 rooms on a night runs at 75% occupancy. Over a month, use room nights on both sides of the division.

## Sources

- [CoStar, U.S. hotels report first full-year occupancy and RevPAR declines since 2020 (January 20, 2026)](https://www.costar.com/products/str-benchmark/resources/press-releases/us-hotels-report-first-full-year-occupancy-revpar)
- [Hotel Dive, CoStar and Tourism Economics raise U.S. hotel performance outlook for 2026 (August 7, 2026)](https://www.hoteldive.com/news/costar-tourism-economics-raise-us-hotel-performance-outlook-2026/827318/)
- [CBRE Research, Figures Hôtels France Q4 2025 (MKG data)](https://mktgdocs.cbre.com/2299/c3a12f08-1fb2-4222-80fc-5932211582c1-1595260253/CBRE_Figures_H_tels_France_T4_.pdf)
- [TourMaG, In Extenso 2025 review of French hotel performance (February 9, 2026)](https://www.tourmag.com/Bilan-2025-le-chiffre-d-affaires-de-l-hotellerie-francaise-a-progresse-de-2_a130416.html)
- [Hospitality Net, Duetto and HotStats spotlight the shift from revenue to profit at FITUR 2026](https://www.hospitalitynet.org/news/4130520/duetto-and-hotstats-spotlight-the-shift-from-revenue-to-profit-at-fitur-2026)
- [Deloitte, 2026 summer travel survey press release](https://www.deloitte.com/us/en/about/press-room/deloitte-as-rising-costs-slow-summer-travel-to-six-year-low-travelers-plan-to-spend-more.html)
- [TechCrunch, Google's AI Mode can now help book hotels (August 27, 2026)](https://techcrunch.com/2026/08/27/googles-ai-mode-can-now-track-flight-prices-help-book-hotels-and-more/)