How do you calculate the rate par in hotel?

Answer 1

I am not sure what you mean by Rate PAR. PAR means Per Available Room in the Hotel Industry. Rate PAR could mean Rate Per Available Room. Another similar term used in the industry is ADR. That's Average Daily Rate. Means we add up all the individual rates of the rooms sold and divide the same by the number of rooms sold.Just like airlines, hotels sell rooms under different rate codes.Hence for the same day, same room type ,customers may be paying different rates. Hence we need to take the average of all the rates for the rooms sold and that is called ADR. If we sold say 100 rooms and ADR is 90, we should have made $ 9000 ( 100 * $90 ) on that day. There is another similar term called REVPAR. That's Revenue PER AVAILABLE ROOM. Its usually calculated for the month or for the Year. It means how much we are making per available room ( out of order rooms not included ) ,irrespective of whether the room is sold or vacant. In the above example, we made $ 9000 in a day, but what happens if we had another 50 rooms to sell. Hence the hotel made $ 9000 from 150 available rooms, hence REVPAR for that day would be $ 9000/150 = $60. Hence the ADR is $ 90 ,but REVPAR is $ 60 only.