RevPAR, or Revenue per Available Rental, is a key performance metric in the hospitality industry in general and the short-term rental business in specific which measures how effectively a property generates revenue. It combines the average daily rate (ADR) and the occupancy rate to provide a comprehensive picture of revenue performance across both booked and unbooked nights.
RevPAR is defined as a property’s revenue per available rental. RevPAR is calculated by dividing revenue by the number of available listings. Alternatively, it can also be calculated by multiplying the average daily rate (ADR) by the occupancy rate.
RevPAR is one of the most important performance metrics for Airbnb investors, hosts, and managers as it reflects the overall income potential of a property. As the revenue per available rental incorporates the average daily rate and the occupancy rate, it accounts for both pricing and vacancy, giving a more complete understanding of STR performance.
By tracking RevPAR, you can:
With tools like Airbtics’ RevPAR calculator, you can easily and quickly calculate revenue per available rental to find opportunities to increase your Airbnb revenue and ROI.
There isn’t a single, universal number that qualifies as a good RevPAR. A good revenue per available rental value depends on multiple factors including:
Generally speaking, a higher RevPAR indicates better short-term rental performance as you are able to make more money per single rental. However, what’s considered good varies widely. For example, a RevPAR of $100-$120 might be considered excellent in a suburban market, while it is insufficient to yield strong returns in a hot, urban market, where the average RevPAR might exceed $200.
To determine if your RevPAR is good, you should:
Ultimately, a good RevPAR is one that exceeds the market averages, grows steadily over time, covers your operating costs, aligns with your investment goals, and provides strong ROI.
To calculate RevPAR for a portfolio or a market, you have to go through the following steps:
Calculating the RevPAR of a single property is done by following these steps:
The formula used to calculate RevPAR for a portfolio or a market is:
The RevPAR formula for a single property is:
While the RevPAR calculation formula includes only a couple of variables, it is not always easy to calculate. You need to have access to solid, reliable short-term rental data to be able to calculate total average daily rate and occupancy accurately. To simplify the process and make results highly accurate, use a RevPAR calculator.
To gain a better understanding of the RevPAR formula, let’s take a look at a specific real-life example.
A vacation rental is listed for 25 nights per month and earns a revenue of $5,000.
Applying the first RevPAR formula:
The same property has an average nightly price of $250 and an occupancy rate of 80%.
Using the second RevPAR formula:
In both cases, the RevPAR is $200, which means that the host made $200 per night over the course of the month, whether booked or not.
Airbtics offers a comprehensive Airbnb calculator that also pairs as a RevPAR calculator. This is a must-have tool for STR investors, hosts, and property managers as it eliminates guessing and error-prone Excel spreadsheets from vacation rental analysis and investment.
Instead, Airbtics’ RevPAR calculator provides instant, reliable estimates of:
Using the Airbtics’ RevPAR calculator to quickly and accurately forecast the performance of any market and property is easy.
Just follow these steps:
As soon as you provide this info, our calculator will return a comprehensive short-term rental property analysis based on the performance of similar listings in the area. The more details that you provide, the more accurate the analysis.
Our RevPAR calculator offers highly accurate and trustworthy predictions about a property’s expected performance before you even buy it. This allows you to make profitable vacation rental investment decisions with less manual effort.
Instantly get a reliable RevPAR projection based on market trends & comps.
Access in-depth analysis of the local market to determine its potential for Airbnb investments.
Analyze comparable Airbnb & Vrbo listings for deeper analysis of your property.
See 5-year cash flow projection & 24-month breakeven analysis.
Forecast important metrics including ADR, occupancy, revenue & ROI.
Find out start up costs, operating expenses, financing fees & others.
Check out the impact of seasonality on listings in the local market with visual representations.
Airbtics guarantees 97% data accuracy based on the analysis of 15+ million listings.
Benefit from an interactive design that allows you to calculate on both desktop & mobile devices.
The Airbtics’ RevPAR calculator gives investors, hosts, and Airbnb managers a fast and reliable way to evaluate rental performance without spreadsheets and guesswork.
Here’s why this tool is an absolute game-changer:
The RevPAR is not set in stone. There are many things a host or property manager can do to increase their revenue per available rental.
Here are practical tips to boost performance:
RevPAR is one of the many metrics that you need to take into consideration for a successful, profitable short-term rental property investment. However, finding the best Airbnb investment opportunity doesn’t need to take months of research and analysis. With the Airbtics’ RevPAR calculator, top vacation rental investments are just a few clicks away.
Revenue per available rental, or RevPAR, is calculated by dividing the total revenue generated over a certain time by the total number of listings available during the same time. Alternatively, you can multiply the average daily rate (ADR) by the occupancy rate.
To save time and get accurate estimates, use the Airbtics’ RevPAR calculator.
While RevPAR is a valuable performance metric for short-term rental investments, it has some limitations that investors need to take into account, namely:
For comprehensive analysis, RevPAR should be used along with other metrics, such as net operating income (NOI), ROI, cap rate, and cash on cash return.
Airbtics’ vacation rental data offers industry-leading accuracy of 97%. This is driven by the superior data collection, cleaning, and calculation methods used by the Airtics team. The company scrapes data from over 15 million listings on Airbnb and Vrbo. Data is updated weekly to bring always up-to-date results. Data is verified and validated through rigorous testing and comparison with official sources.
This makes the Airbtics’ RevPAR calculator one of the most accurate Airbnb analysis tools available to investors, hosts, and managers. The calculator is built based on multiple data sources, refined ML models, regular updates, and manual quality checks.
The Airbtics’ RevPAR calculator is a powerful investment tool that helps both beginner and experienced investors find and compare markets and properties.
The only limitations that come with the tool include:
The RevPAR calculator integrates accurate, up-to-date, verified data from reliable sources to estimate short-term rental performance based on local market conditions. Thousands of investors use Airbtics to boost their market research and property analysis for more revenue and stronger return.
