Learn what ADR, RevPAR and group displacement mean, then fill in your own figures to work them out. Nothing you enter leaves your browser.
What is ADR?
ADR, or average daily rate, is the average price paid for each room you sold. It shows what your rooms actually sold for once discounts, packages and negotiated rates are counted.
ADR = room revenue ÷ rooms sold
ADR=Room revenueRooms sold
What to fill in
Room revenue
What guests paid for rooms only. Leave out tax, food and beverage, and fees.
Rooms sold
Rooms that guests paid for over the same nights.
Why it matters
Track ADR by night and by month to see whether your prices are holding. ADR ignores empty rooms, so a high ADR can hide a quiet hotel. Read it next to occupancy, or use RevPAR.
Worked example
A hotel with 120 rooms sells 96 of them for 12,480 in room revenue. 12,480 ÷ 96 = 130.00, so its ADR is 130.00.
For a week or a month, use the totals for that period.
Work out your ADR
Replace the example figures with your own, in any currency.
Your ADR
130.00
12,480 ÷ 96 = 130.00
What is RevPAR?
RevPAR, or revenue per available room, spreads your room revenue across every room you could have sold, including the ones that stayed empty. It combines rate and occupancy in one number.
RevPAR = room revenue ÷ rooms available
RevPAR=Room revenueRooms available
or
RevPAR is also ADR × occupancy.
RevPAR=ADR × Occupancy
What to fill in
Room revenue
What guests paid for rooms only. Leave out tax, food and beverage, and fees.
Rooms available
Every room you could have sold, empty ones included. Leave out rooms that are out of order.
ADR
Average daily rate for the same nights: room revenue ÷ rooms sold.
Occupancy
Rooms sold ÷ rooms available for the same nights, as a percentage.
Why it matters
A hotel can raise its rates and lose guests, or fill up at low rates. RevPAR shows whether the trade paid off. Because it is measured per room, you can compare hotels of different sizes, and one period with another.
Worked example
The same hotel has 120 rooms available and earns 12,480. 12,480 ÷ 120 = 104.00. That matches its ADR of 130.00 × its occupancy of 80%.
For a week or a month, count room nights available: rooms × nights in the period.
Work out your RevPAR
Replace the example figures with your own, in any currency.
Your RevPAR
104.00
12,480 ÷ 120 = 104.00
What is group displacement?
When a hotel cannot fit a group and all its regular guests, the group pushes out some transient guests who would have paid your normal rate. Group displacement compares what the group pays with the transient revenue you give up.
How it is worked out
1Open rooms = available − sold
2Displaced rooms = group rooms − open rooms, never below zero
4Break-even group rate = displaced rooms × ADR ÷ group rooms
What to fill in
Available
Rooms the hotel can sell each night. Leave out rooms that are out of order.
Sold
Rooms you expect to sell each night without the group.
ADR
The average rate you expect those rooms to sell for.
Group rooms
Rooms the group needs each night.
Group rate
What the group pays for each room, each night.
Nights
How many nights the group stays.
Why it matters
A group fills many rooms in one booking, usually at a lower rate. On a night you would sell out anyway, it can cost you money. On a quiet night, almost any rate adds revenue.
Worked example
A hotel with 120 rooms expects to sell 96 rooms at an ADR of 130.00. A group wants 40 rooms at 110.00 for 3 nights. 24 rooms are open, so the group displaces 16 rooms a night. Over the stay it brings 13,200 and displaces 6,240, so it adds 6,960. Its break-even rate is 52.00.
This compares room revenue only. Meeting rooms, food and beverage, commissions, rooms the group releases before arrival, and the nights either side of the stay are left out.
Check a group
Replace the example figures with your own, in any currency.
Net room revenue from the group
+6,960
40 × 110.00 × 3 = 13,200 group revenue
16 × 130.00 × 3 = 6,240 displaced
Displaced rooms a night
16
Break-even group rate
52.00
See what your comp set charges for the same nights
Anny AI Market Intelligence shows the rates your competitors charge for upcoming arrival dates, so you can quote the next group with the market in view.