RevPAR is the single most important metric for understanding the "true north" of a market’s performance. While Average Daily Rate (ADR) only measures the average revenue earned for booked nights, RevPAR factors in Occupancy to show the average revenue earned for every single night that is available. It tells us the value of every night on the calendar, whether it was booked or sat empty.
There are two ways to calculate RevPAR. Both produce the same result:
RevPAR = ADR × Occupancy Rate
OR
RevPAR = Total Revenue ÷ Total Available Nights
Let’s say total revenue earned by all short term rentals in a market was $200,000 in June. There were 2500 nights that were available for bookings and 1000 of them were booked.
ADR for June would be Revenue ($200,000) ÷ Booked Nights (1000) = $200.
Occupancy for June would be Booked Nights (1000) ÷ Available Nights (2500) = 40%.
REVPAR can be calculated using either of these two ways:
REVPAR = ADR ($200) * Occupancy (40%) = $80
OR
REVPAR = Revenue ($200,000) ÷ Available Nights (2500) = $80
Analyzing monthly RevPAR trends in a market offers specific strategic advantages:
Identify Seasonal Rhythms: Tracking monthly and yearly fluctuations helps you pinpoint the exact times of year to be aggressive with rates, or offer strategic promotions to fill gaps.
Measure Market Health: Year-Over-Year (YoY) growth signals a healthy market where demand is outpacing supply, allowing you to increase prices.
Spot Market Saturation: A YoY decline in RevPAR can alert you to market saturation or shifting economic conditions, signaling that you may need to adjust your strategy to stay competitive.
Orlando, Florida’s multi-year RevPAR data reveals a resilient market.
The Peak Performance Window: March consistently stands as the strongest month for revenue efficiency, with RevPAR exceeding $180. This peak occurs when both ADR and occupancy reach their highest levels due to spring break demand.
Summer and Winter Consistency: Summer months offer strong secondary peaks, with RevPAR climbing back into the $150–$175 range. These windows offer predictable high returns for properties that are available and priced optimally for family travelers.
The "Value" Dips: September marks the lowest point on the chart, with RevPAR dipping below $100. This is the annual market breather, where low demand requires a careful balance of discounting to keep properties from sitting entirely vacant.
Growth Trends: In 2025 (yellow line), the market has shown strong RevPAR growth in a few shoulder months such as January and November, indicating that Orlando is successfully attracting more year-round interest.
RevPAR Pro Tip:
Use our filters to get the average monthly RevPAR for listings similar to yours in size, property type, price tier, review score, and amenities. Then use the formulas above to calculate your property’s RevPAR performance and see how your RevPAR stacks up against similar properties.
If average RevPAR among similar properties is $170, see if you’re finding the right balance between “high price” and “high occupancy.” Take the two example scenarios below.
80% occupancy at a $200 ADR → $160 RevPAR
40% occupancy at a $300 ADR → $120 RevPAR
In the first scenario, strong occupancy is achieved by keeping prices relatively low. In the second, higher prices reduce demand too much. Both approaches lean too heavily in one direction which lowers overall revenue efficiency. The goal is to find the balance that produces the highest RevPAR.
70% occupancy at a $260 ADR → $182 RevPAR
The third scenario is the most efficient — it strikes the best balance between price and demand, producing the highest revenue per available night that exceeds performance of similar properties. You always want to prioritize the pricing and occupancy balance that meets or beats the RevPAR performance of your competition.