What is RevPAR?
Revenue Per Available Room (RevPAR) is a hotel performance metric that measures the average revenue generated per available room, regardless of whether the room is occupied.
RevPAR combines two key metrics — occupancy rate and average daily rate (ADR) — into a single number that reflects how well a hotel fills its rooms and at what price. It is the most widely used metric in the hotel industry for comparing performance across properties, time periods, and competitive sets.
How to calculate RevPAR
RevPAR = Total Room Revenue / Total Available Rooms or RevPAR = ADR x Occupancy Rate
Example
A 100-room hotel generates $8,000 in room revenue on a given night. RevPAR = $8,000 / 100 = $80. If the ADR was $100 and occupancy was 80%, you get the same result: $100 x 0.80 = $80.
Why RevPAR matters
RevPAR tells you how effectively your hotel converts available inventory into revenue. A high RevPAR means you are filling rooms at good rates. A low RevPAR signals either low occupancy, low rates, or both — and helps you diagnose which lever to pull.
Related terms
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