What is the difference between ADR and RevPAR?

ADR is total room revenue divided by rooms SOLD (only the rooms that were rented). RevPAR is revenue divided by rooms AVAILABLE (the full inventory, including empty rooms). RevPAR = ADR × Occupancy. RevPAR is the more comprehensive performance metric because it captures both pricing and demand.

What's a good RevPAR?

It varies by hotel class. STR (Smith Travel Research) 2025 U.S. averages: Economy $48, Midscale $72, Upper Midscale $98, Upscale $148, Upper Upscale $195, Luxury $310. Always compare against your direct competitive set, not just industry averages.

Is rate or occupancy more important?

Both, but in different conditions. In high-demand periods, prioritize rate (yield premium pricing for the same occupancy). In low-demand periods, prioritize occupancy (every empty room is lost revenue). Skilled revenue managers shift the strategy by day-of-week, season, and channel.

Gross Operating Profit Per Available Room. It adds operating costs to the RevPAR view, showing actual profitability per room rather than just revenue. Useful for benchmarking and for assessing whether higher RevPAR is being achieved at acceptable margins.

How do I improve ADR without losing occupancy?

Segment your guest base — corporate, leisure, group — and price differently per channel. Sell up to higher room types via direct booking nudges. Use dynamic pricing tied to lead time and demand forecasts. Refresh the product (renovation, amenities) to justify higher positioning.

What channels affect ADR?

OTAs (Booking.com, Expedia) charge 15-25% commission, reducing net ADR. Direct bookings via your hotel website preserve full ADR. Wholesale/group blocks lock in lower rates but provide volume. Loyalty redemptions show as zero ADR rooms but generate ancillary spend.

Finance

ADR Calculator (Average Daily Rate)

Calculate your hotel's Average Daily Rate and related revenue metrics.

Total Room Revenue ($)

Rooms Sold

Total Available Rooms

Period (days)

Formulas:
ADR = Total Room Revenue / Rooms Sold
Occupancy = Rooms Sold / Available Rooms × 100
RevPAR = ADR × Occupancy% = Revenue / Available Rooms

The hotel industry's revenue language is built on three letters: ADR (what the rooms sold for), RevPAR (what the inventory generated whether sold or not), and GOPPAR (what was left after running costs). Get the relationships right and revenue strategy becomes obvious; confuse them and you optimize the wrong number.

ADR, RevPAR, GOPPAR — what each measures

ADR (Average Daily Rate): Revenue ÷ rooms sold. Measures pricing power per occupied room.
RevPAR (Revenue Per Available Room): Revenue ÷ available rooms = ADR × Occupancy. Measures inventory yield — captures both rate and demand.
GOPPAR (Gross Operating Profit Per Available Room): GOP ÷ available rooms. Adds the cost dimension; reflects actual profitability per room.
TRevPAR (Total Revenue Per Available Room): Total hotel revenue (rooms + F&B + spa + events) ÷ rooms. Used for full-service properties where non-room revenue is material.

The math

ADR = Total Room Revenue ÷ Rooms Sold
Occupancy = Rooms Sold ÷ Rooms Available
RevPAR = ADR × Occupancy = Revenue ÷ Available Rooms
GOPPAR = Gross Operating Profit ÷ Available Rooms

Walkthrough: 40-room hotel, 30-day month

Available room nights: 40 × 30 = 1,200
Rooms sold: 800 (66.7% occupancy)
Total room revenue: $150,000
ADR: $150,000 ÷ 800 = $187.50
RevPAR: $150,000 ÷ 1,200 = $125.00
Daily revenue average: $5,000
If operating margin is 40%: GOPPAR = $50/room/day

2025-2026 U.S. STR benchmarks

Segment	ADR	Occupancy	RevPAR
Economy	$78-95	55-62%	$45-55
Midscale	$105-135	60-68%	$68-88
Upper Midscale	$135-170	65-74%	$92-120
Upscale	$190-260	70-78%	$140-195
Upper Upscale	$260-340	68-76%	$180-250
Luxury	$380+	65-78%	$260+

Improving ADR and RevPAR

Channel mix: shift incremental bookings from OTAs (15-25% commission) to direct booking via loyalty perks, free Wi-Fi, free breakfast offers, and a frictionless website.
Dynamic pricing: implement revenue management software (Duetto, IDeaS, RoomPriceGenie) that adjusts rates daily based on lead time, competitor rates, and demand forecasts.
Length-of-stay restrictions: require minimum stays around high-demand events to capture both nights at premium rates.
Upsell at check-in: trained front-desk staff can upgrade 15-25% of arrivals to higher room types for $10-50 increments.
Product investment: renovations, premium amenities, and brand repositioning move a hotel up a class (and ADR tier) for capex/revenue payback typically 5-8 years.

FAQ

Should ADR include complimentary rooms?

No — STR convention excludes comp rooms from "rooms sold" and revenue from both numerator and denominator. Including them artificially deflates ADR.

What about loyalty point redemptions?

Industry practice varies. STR includes redemptions in rooms sold at zero revenue (which depresses ADR slightly). Some brands report ADR excluding redemptions for cleaner pricing analysis.

Are taxes included in ADR?

No. ADR is pre-tax room revenue per occupied room. Total room revenue for tax purposes includes occupancy taxes; the ADR calculation excludes them.

How does seasonality affect benchmarks?

Significantly. Compare to the same-month-prior-year benchmark for your specific market, segment, and competitive set. STR Trend Reports provide this comparable data.

What is RGI?

Revenue Generation Index — your RevPAR divided by the competitive set's RevPAR. RGI of 1.10 means you're 10% ahead of your comp set; RGI under 1.00 means you're losing share.

Is RevPAR the most important metric?

For revenue performance, yes — it captures both rate and demand. For profitability, GOPPAR is more comprehensive because it accounts for the cost side. Use both together.

Related calculators

Sources

Reviewed by Ellen Karuthers, MBA, on February 28, 2026.