Work the RevPAR waterfall
Calculate RevPAR and explain a before-after change by decomposing ADR and occupancy.
Last Saturday: 82 rooms sold at $151 ADR in a 96-room hotel. This Saturday: 88 rooms sold at $144 ADR. Did rooms revenue productivity improve? RevPAR = Rooms Revenue ÷ Available Rooms, then decompose the movement into ADR and occupancy drivers. Calling the weekend "better" because rooms revenue rose, or "worse" because ADR fell, without calculating the combined capacity result. Calculate last Saturday room revenue 82 rooms × $151 ADR = $12,382 room revenue. Start with actual room revenue because RevPAR divides revenue by available capacity. Calculate this Saturday room revenue 88 rooms × $144 ADR = $12,672 room revenue.…
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