Average Room Rate Formula With Example

Total room sold for 21st mar 2017 250.

Average room rate formula with example.

Total room revenue for 21st mar 2017 25000. Single rate where the single rate is same for all room types. The formula for hotel average rate harr or hadr calculation with examples. Calculate your average daily rate.

90 average occupancy rate. The sum of all the room rates is 20 executive rooms times 100. Using the second formula we can arrive at the same answer. Average room rate formula.

Adr rooms revenue earned number of rooms sold. 75 total room revenue 1000 rooms x 90 room x 75 occupancy x 90 nights in the quarter. In this example there are 20 executive rooms in the hotel that cost 100 per night and 80 regular rooms that cost 75 per night. A hotel wants to know its revpar so it can accurately assess.

Total complimentary rooms for 21st mar 2017 2. Calculate average room rate. 12 300 daily room revenue 120 rooms sold 102 50 adr. The average daily rate adr measures the average rental revenue earned for an occupied room per day.

Rack rate published tariff for single 125 00. It is important to note that in addition to complimentary rooms being discounted from calculations revenue earned away from room revenue is not factored in either and neither is any money paid back out to guests. The average cost for a room is 100 a night. Rooms revenue earned number of rooms sold.

To calculate the average room rate add up all the room rates and divide the sum by the total number of rooms in the hotel. For example if you sold 3 720 room nights during the month for a total revenue of 381 300 you could calculate your adr using the following formula. The formula to calculate your average daily rate is. Your average daily rate is the average rental income per paid occupied room over 30 days.

Total number of rooms sold in single 25. It s actually pretty simple. Example 1 potential avg. Using the first formula and the information above we can calculate that company xyz s revpar was.

The formula for potential average single rate. Average daily rate is a powerful metric so one might assume that a complex formula is used in order to come up with this pivotal number. Average hotel room rate harr or hadr total room revenue total rooms sold comp rooms. Potential average single rate single room revenue at published tariff or rack rate number of rooms sold as singles.

For example a hotel has a total of 150 rooms of which the average occupancy rate is 90. Be sure to exclude any hotel rooms that are not in use or available to the public from your average room rate formula.