ADR, RevPAR and occupancy: how to calculate and use them

HostBooking · Updated Oct 28, 2026 · 8 min read

Occupancy is room nights sold divided by room nights available. ADR is room revenue divided by room nights sold. RevPAR is room revenue divided by room nights available, which equals ADR times occupancy. Together they tell you how well you fill rooms, at what price, and what each room really earns.

The three figures and their formulas

• Occupancy = room nights sold ÷ room nights available × 100%.
• ADR (average daily rate) = room revenue ÷ room nights sold.
• RevPAR (revenue per available room) = room revenue ÷ room nights available = ADR × occupancy.

A "room night" is one room for one night. A six-room homestay open for a 30-day month has 6 × 30 = 180 room nights available. Rooms you take off sale for repairs or family should not count as available, or occupancy reads lower than it is.

Example: six rooms, a 30-day month

This month you sold 117 room nights, and room revenue after discounts was 76,050,000 VND.

• Occupancy = 117 ÷ 180 = 65%.
• ADR = 76,050,000 ÷ 117 = 650,000 VND.
• RevPAR = 76,050,000 ÷ 180 = 422,500 VND (also 650,000 × 65%).

Why RevPAR matters more than either figure alone

A high ADR is not necessarily good: selling few rooms at a high price gives a fine ADR while many rooms sit empty. High occupancy is not necessarily good either: cut prices deep enough and every room fills without bringing in more money. RevPAR combines both. For the same six-room homestay, compare three pricing choices over one month:

Amounts are in VND. Here the lower price gives the best RevPAR, but that is not the end of it: 27 extra nights are 27 more cleans, laundry loads, utilities and amenities. Take the cost of each extra night off before deciding. The table illustrates the arithmetic; it does not predict how your guests will respond to your prices.

What counts as good?

There is no single number. Occupancy and rates vary a great deal by location (city centre, beach, mountains), season, day of the week and the guests you aim for. A seasonal homestay can be full in high season and nearly empty in low season and still have a good year. The most useful comparison is with yourself:

• This month against the same month last year.
• Weekdays against weekends.
• One room type against another.

Rooms rented by the hour

An hourly room can take several bookings a day, so a rate based on nights stops describing it. Use hourly occupancy = hours sold ÷ hours available. Two rooms open 16 hours a day for 30 days have 2 × 16 × 30 = 960 hours available; selling 384 of them is 40% hourly occupancy. Look at occupancy by time of day to find the slots that are always empty, as in running an hourly homestay.

OTA commission and what you actually keep

ADR and RevPAR are usually worked out on what the guest pays, before the OTA’s commission. If much of your business comes from Booking.com or Agoda, also look at revenue after commission. Continuing the example, say 60 of the 117 nights came through OTAs at 15% commission (your real rate depends on your contract).

• OTA revenue: 60 × 650,000 = 39,000,000 VND; commission at 15% = 5,850,000 VND.
• Left after commission: 76,050,000 − 5,850,000 = 70,200,000 VND.
• Over 180 available room nights, each one now brings in 390,000 VND rather than 422,500.

That gap is why it pays to bring returning guests to book direct: see relying less on Booking and Agoda. To find the price to list on an OTA so you still receive the amount you want, use the OTA price calculator.

Using the figures to set prices

1. Look at occupancy by day of the week. On days that are nearly always full, try a slightly higher rate and watch RevPAR for a few weeks.
2. On days that are usually empty, try a softer rate, a long-stay offer or a package, and see whether RevPAR rises.
3. Compare room types: one with a high ADR but low occupancy may be overpriced.
4. Change one thing at a time, and compare with the same period last year so a seasonal change is not mistaken for a price effect.

How HostBooking’s report works them out

The Reports page computes these figures from the bookings already in the system:

• Net revenue is room revenue after discounts. Extras and desk sales are shown separately as service revenue; refunds have their own line and are not deducted from net revenue.
• Only sold bookings count (confirmed, in house, checked out). Bookings awaiting a deposit or cancelled are not revenue.
• A stay that runs across two months is split night by night into the right month.
• Available is the rooms of the room types on sale, minus rooms blocked or under maintenance that day.
• Occupancy = nights sold ÷ nights available; ADR = net revenue ÷ nights sold; RevPAR = net revenue ÷ nights available.
• Properties that sell by the hour also get hourly occupancy: hours sold over hours sellable, from the opening hours you set for each day.
• The tables by channel and by guest segment show OTA commission and what is left after it.
• Compare with the previous period or the same period last year, filter by property, room type, room, source and channel, and export to CSV.

Reports are included on every plan, Free included.