Glossary / RevPAR
RevPAR(Revenue Per Available Room)
Revenue per available room (RevPAR) is a hospitality metric that shows how much room revenue a hotel earns for each available room in a period. It combines occupancy and average daily rate into one number, making it useful for understanding whether revenue changes come from higher rates, better occupancy, or both.
Formula
RevPAR = Room revenue / Available room nights, or ADR x Occupancy rate
Example
If a 40-room hotel has 1,200 available room nights in a month and earns $144,000 in room revenue, RevPAR is $120. If ADR rises but occupancy falls, RevPAR shows whether the tradeoff improved total room yield.
Why it matters
RevPAR is one of the clearest hotel performance metrics because it balances price and occupancy. A higher ADR is not always better if rooms sit empty; a higher occupancy is not always better if rooms are discounted too heavily.
Frequently asked
Is RevPAR only for hotels?
RevPAR is mainly used by hotels, inns, short-term lodging, and other room-based hospitality businesses. Restaurants and bars usually track sales, average check, covers, and labor cost instead.
What is the difference between RevPAR and ADR?
ADR measures revenue per occupied room. RevPAR measures revenue per available room, so it also reflects occupancy.
Related terms
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