Hospitality & Food Service Lab

Hospitality RevPAR & Prime Cost Lab

Calculate hotel RevPAR, TrevPAR, and ADR yield tradeoffs alongside restaurant Prime Cost percentages (Food + Labor) and Revenue Per Available Seat Hour (RevPASH).

Hospitality Model Yield & RevPAR Matrix Hospitality Theory FAQ

Hospitality Presets

Load calibrated lodging and restaurant profiles.

Step 1: Lodging & Food Service Parameters

Hospitality Operating Assumptions

1. Hotel & Motel Operations (RevPAR)

$
%
$
$

2. Restaurant & Dining (Prime Cost)

$
%
%
Hotel RevPAR
$0.00/day
Total TrevPAR
$0.00/day
Dining Prime Cost
0.0%
Seat Hour (RevPASH)
$0.00/hr
Monthly Lodging Rev
$0/mo
Monthly Dining Rev
$0/mo

Step 2: Lodging Yield Optimization

ADR vs. Occupancy Yield Management Tradeoffs

Simulates rate increases versus promotional occupancy discounts to determine net RevPAR and monthly top-line impact.

Yield Pricing Strategy Test ADR ($) Test Occupancy (%) Resulting RevPAR ($) Monthly Revenue Impact

Hospitality Economics Guide

Understanding hospitality unit economics

Hospitality assets operate with highly perishable inventory: an unsold room or an empty dinner seat cannot be stored for tomorrow.

  • RevPAR vs. ADR: High ADR with low occupancy can leave rooms empty, while high occupancy with steep discounts destroys profit. RevPAR blends both into a single efficiency benchmark.
  • The 60% Prime Cost Rule: In restaurants, Cost of Goods Sold (Food + Beverage) and Total Labor should combine to less than 60% of total revenue.
  • RevPASH Optimization: Increasing table turn speed during peak dining windows dramatically lifts Revenue Per Available Seat Hour without adding square footage.

Test hotel yield strategies in the Motel Simulator and restaurant operations in the Restaurant Simulator.

Hospitality Equations

Essential industry formulas

RevPAR = Average Daily Rate (ADR) × Occupancy Rate

TrevPAR = (Room Revenue + Ancillary Revenue) ÷ Total Available Rooms

Prime Cost % = Food Cost % + Labor Cost %

RevPASH = Total Restaurant Revenue ÷ (Total Seats × Operating Hours)

Table Turns = Total Guests ÷ Total Dining Seats

Explore beverage operations in our Coffee Shop Simulator.

FAQ

Hospitality revenue questions

What is RevPAR and how is it calculated?

RevPAR (Revenue Per Available Room) is the core KPI of hotel revenue management. It equals Average Daily Rate (ADR) multiplied by Occupancy Rate, or Total Room Revenue divided by Total Available Rooms.

What is restaurant Prime Cost?

Prime Cost is the sum of Total Cost of Goods Sold (Food + Beverage Cost) and Total Labor Cost (wages, taxes, benefits). Profitable independent restaurants target a Prime Cost under 60% of total sales.

What is RevPASH in restaurant operations?

RevPASH (Revenue Per Available Seat Hour) measures dining room capacity efficiency by dividing total restaurant revenue by available seats multiplied by operating hours.

What is TrevPAR in hotel management?

TrevPAR (Total Revenue Per Available Room) measures total property monetization per room by including ancillary revenues such as food, parking, resort fees, and spa services alongside room rates.

Can I export hospitality models and yield simulations to CSV?

Yes. You can export complete RevPAR and Prime Cost metrics as a UTF-8 CSV spreadsheet with formula injection defense or print an executive manager brief.

Are these calculations formal hospitality franchise or appraisal advice?

No. This tool provides simplified educational models for hospitality operations without formal STR benchmarking audits, franchise disclosure documents, or hospitality tax opinions.

Continue Exploring Hospitality Tools

Explore our Hospitality & Food Service Games Hub, model labor productivity in the Staffing Capacity Simulator, analyze inventory flow in the Cash Conversion Cycle Simulator, or test price sensitivity in the Pricing Strategy Simulator.