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RevPAR

Revenue per Available Room

Updated over 2 years ago

The revenue that reflects both room revenue and occupancy rate for hotels.

RevPAR is a metric used in the hospitality industry to measure hotel performance. The measurement is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. As a metric, it is concerned with both room revenue and occupancy rate, which makes it an important indicator of the overall performance of a hotel, and a useful component of a revenue management strategy. It provides a clear idea of current performance and provides an idea of how much a hotel is able to charge for its rooms.

How this is calculated

Formula:

RevPAR = ADR per Key x Occupancy Rate

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