A:### Quick Answer

To find the RevPAR of a hotel, multiply the average occupancy rate during a given time period time by the average daily room rate. RevPAR stands for revenue per available room, and is a financial measure that hotels use to evaluate their performance in a given time period.

Know More**Find the number of days in your chosen time period**As an example, find the RevPAR for a hotel with 100 rooms during the month of January, which has 31 days.

**Calculate the average room occupancy**To calculate the average room occupancy in January, divide the number of occupied rooms by the number of available rooms during the time period. In the example, there are 100 rooms available on each day in January, so in total, there are 3100 rooms available for the whole month (100 rooms times 31 days). If a look through hotel records reveals that 2,200 rooms were occupied in January, then the average room occupancy is 2,200 occupied rooms divided by 3,100 available rooms, which equals 0.71.

**Calculate average room rate**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. 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. The sum of all the room rates is 20 executive rooms times $100 plus 80 regular rooms times $75, which equals $8,000. Thus, the average room rate is the sum ($8,000) divided by the total number of rooms (100). $8,000 divided by 100 gives an average rate of $80 per room.

**Calculate RevPAR**To find the final RevPAR, multiply the average occupancy rate during the chosen time period by the average room rate. In the example, RevPAR is 0.71 times $80, which is $56.80.

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- Q:
## How do you calculate revenue?

A:

Full Answer >**Business owners calculate gross revenue by multiplying the quantity of goods or services sold during a specific period by the sales price for each item, as explained by the Udemy website.**Basically, revenue is the amount of money a company generates from its primary business activities.Filed Under: - Q:
## How do you calculate margin?

A:

Full Answer >**Divide the profit by the selling price to find the gross margin percentage for any items, according to Calculator Soup.**The profit is the revenue an item brings in less the cost.Filed Under: - Q:
## How do you calculate prorated amounts?

A:

Full Answer >**Prorated amounts are calculated by dividing the cost of a service by the number of days in the service period, according to Lucas Hall from Landlordology.**The resulting number is then multiplied by the number of days the service is used to find the prorated amount.Filed Under: - Q:
## How do you calculate NPV?

A:To calculate net present value of an investment, divide the guaranteed return by 1 plus the interest rate that a different investment would bring in, and subtract the initial investment from the result. Consider a positive answer a sign that the investment is comparatively sound.

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