An eight-room guesthouse sells every room on a Saturday and feels successful. At month-end, cash is tight. Several rooms sold at discounted OTA rates, two company accounts remain unpaid and the “included” breakfast was never costed. Occupancy alone hid the problem.
1. Occupancy: how much capacity sold?
Occupancy = room nights sold ÷ room nights available × 100. An eight-room property open for 30 nights has 240 available room nights. If it sells 144, occupancy is 60%.
2. ADR: what was the average sold-room rate?
Average daily rate (ADR) = room revenue ÷ room nights sold. If those 144 room nights produce R151,200 in room revenue, ADR is R1,050. Keep room revenue consistent; do not include breakfast or activities one month and exclude them the next.
3. RevPAR: what did each available room produce?
Revenue per available room (RevPAR) = room revenue ÷ available room nights. R151,200 ÷ 240 = R630. You can also calculate occupancy × ADR: 60% × R1,050 = R630.
| Scenario | Occupancy | ADR | RevPAR |
|---|---|---|---|
| Heavy discounts | 80% | R800 | R640 |
| Stronger rate | 65% | R1,150 | R747.50 |
The fuller property is not automatically producing more room revenue per available room.
Add the numbers that drive action
Watch booking-source mix, average stay, cancellation rate, outstanding balances, extras per occupied room and direct repeat rate. Compare like periods because South African destinations have different seasons and event patterns.
Stats SA's March 2026 tourist accommodation release reported 29.1% occupancy and average income of R1,312.60 per stay-unit night sold for the guesthouse and guest-farm category in its surveyed, tax-registered sample. Use it as broad context, not a target for every town or property.
The useful question is not “Were we full?” It is “What did the rooms produce, through which channels, and what was still unpaid?”
A useful monthly review
Compare this month with the same month last year and with the prior three months. Mark school holidays, public holidays, local events, closures and unusual group bookings. Segment direct, OTA, corporate and walk-in business. Numbers without context can encourage a discount during a naturally quiet week or hide a weak rate during peak demand.
Do not ignore cash collection
RevPAR measures room revenue performance, not whether the money arrived. Review outstanding balances and debtor days beside the three room metrics. Revenue that remains unpaid cannot fund wages or groceries.