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
As an example, find the RevPAR for a hotel with 100 rooms during the month of January, which has 31 days.
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.
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.
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.
To curb inflation is to reduce the rate at which the value of currency goes down. When inflation rates are high, prices of goods tend to increase more quickly. Curbing inflation is therefore beneficial to a country's economy.Full Answer >
To calculate equipment rental rates, use a short-term equipment rate calculator or other accounting software, such as that available from the Ontario Ministry of Agriculture, Food and Rural Affairs or the Goldenseal Reference Manual. Enter the information into the data fields required in order to determine the rental rate.Full Answer >
According to Investopedia, to calculate an annual growth rate, take the ending value and divide it by the beginning value. Place that amount to the power of one over the number of years of growth, and subtract one from that amount. This averages growth over a period of years.Full Answer >
The indifference point is where the EBIT, or earnings before interest and tax, is at a break-even level when the EPS, or earnings per share, remain constant under two different financial plans and is calculated for each plan by the EBIT minus interest expenses multiplied by the income tax rate subtracted by 1, divided by the number of outstanding equity shares according to The Manage Mentor website. The equity finance option is favorable if the current EBIT level is below the break-even EBIT level.Full Answer >