£95 at 72 per cent beats £85 at 80: RevPAR 68.40 against 68.00
Occupancy and RevPAR Calculator
Occupancy alone rewards giving rooms away; rate alone rewards an empty house at a proud price. RevPAR is the referee, and it punishes both mistakes at once.
Occupancy and RevPAR Calculator
Rate and occupancy argue; RevPAR referees. Revenue per available room is the one number that stops the two dials being read alone.
Reading the three numbers
Occupancy alone rewards giving rooms away; rate alone rewards an empty house at a proud price. RevPAR is rate times occupancy, so it punishes both mistakes at once.
On the demo, £95 at 72 per cent is a RevPAR of £68.40, and the tempting £85 at 80 per cent is £68.00: fuller, busier, more laundry, slightly less money.
Room lets are standard rated, so the bookkeeping wants the ex-VAT figure: divide by 1.2 before it meets the accounts. The Hospitality Bookkeeping Template does this on its rooms line.
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The same dials in Excel plus a rate-against-occupancy grid, so the whole trade-off is visible on one page.
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