01 / 05NRevPAR
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NRevPAR calculator

Net revenue per available room

Calculate NRevPAR, the channel-cost-aware version of RevPAR, in seconds. NRevPAR strips distribution costs out of room revenue before dividing by available rooms, exposing what your hotel actually keeps per room of inventory.

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Inputs

Your NRevPAR

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NRevPAR = (Room Revenue - Distribution Costs) / Available Rooms

02 / 05Background & method

What NRevPAR actually measures

NRevPAR is the channel-cost-aware sibling of RevPAR. RevPAR tells you how much revenue a room generated. NRevPAR tells you how much of that revenue your hotel actually kept after paying to acquire the booking. The difference between the two is your distribution cost, expressed per available room, and at scale it is one of the most important profitability signals an independent hotel produces.

Phocuswright's 2025 report found that hotels that track and act on NRevPAR consistently achieve a 23% higher net profit margin than peers who track RevPAR alone. The reason is straightforward: NRevPAR exposes the cost of channel mix in a way RevPAR cannot, and forces channel-mix decisions to compete head-to-head with rate and occupancy decisions.

NRevPAR formula

Formula

NRevPAR = (Room Revenue - Distribution Costs) / Available Rooms

Room Revenue
Income from sold rooms only (exclude tax, F&B, spa, ancillary).
Distribution Costs
OTA commissions, GDS fees, metasearch CPC and CPA, payment processor fees, channel manager surcharges.
Available Rooms
Total sellable room-nights in the period (room count x days), excluding out-of-order rooms.

How to read your NRevPAR

A typical independent in 2026 with 110 euro RevPAR, 65% OTA share, 17% blended OTA commission and 2.5% direct payment fee carries a distribution cost of roughly 12 euros per available room, producing an NRevPAR of about 98 euros. A peer with the same RevPAR but 35% OTA share carries roughly 7 euros per available room of distribution cost, producing an NRevPAR of about 103 euros. The 5 to 6 euro per available room gap is structural, recurring, and addressable only by changing the distribution mix.

Compare NRevPAR against RevPAR every month to see whether your channel-mix work is paying off. A widening RevPAR-NRevPAR gap means distribution cost is growing faster than revenue, which is the signal that an OTA dependency problem is forming even when the topline still looks healthy.

What counts as a distribution cost

  • OTA commissions (Booking.com, Expedia, Hotels.com, Agoda, smaller OTAs).
  • GDS booking fees (Sabre, Amadeus, Travelport) and the consortia commissions on top.
  • Metasearch CPC and CPA (Google Hotel Ads, Trivago Rate Connect, Tripadvisor TripConnect, Kayak).
  • Payment processor fees on every channel where the hotel is merchant of record (typically direct).
  • Channel manager surcharges where the vendor charges per-reservation rather than flat monthly.
  • Wholesaler commissions and connectivity fees if they are not already inside the OTA cost.

Strategies to lift NRevPAR

The single highest-leverage move is shifting bookings from OTA to direct. Every percentage point of direct share recovered from a 17% blended OTA channel lifts NRevPAR by roughly 0.10 to 0.20 euros per available room, depending on ADR. A 10-point shift is worth 1.00 to 2.00 euros per available room per night, which translates to 22,000 to 44,000 euros per year for a 60-room hotel running at 75% occupancy.

  • Run the 90-day direct booking plan: parity audit, booking engine speed, metasearch Free Booking Links, then paid metasearch.
  • Negotiate Booking.com commission tiers on volume; ask for parity-protection clauses on Genius.
  • Drop tertiary OTAs that contribute under 2% of bookings; the channel-management overhead exceeds the marginal revenue.
  • Switch to a tokenizing payment processor with a sub-3% fee if you are still on a legacy gateway-plus-acquirer stack.
  • Treat metasearch as a wedge into direct, not a separate channel: a metasearch booking that lands in direct still hits NRevPAR favorably vs an OTA booking at the same gross rate.
03 / 05FAQ

Common questions about NRevPAR.

RevPAR (Revenue Per Available Room) is total room revenue divided by available rooms. NRevPAR (Net Revenue Per Available Room) is the same calculation after subtracting distribution costs (OTA commissions, GDS fees, metasearch, payment fees). RevPAR tells you how much revenue the inventory produced; NRevPAR tells you how much you actually kept. The gap between them is your channel-cost exposure expressed per available room.

05 / 05Track this in Pulse

Track this metric live, alongside everything else.

Pulse, the live KPI dashboard inside Prostay, calculates this metric on the same data your team works from. No manual exports, no end-of-month surprises.