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What is RevPAR and how do I calculate it?
RevPAR, revenue per available room, is room revenue divided by rooms available, or equivalently occupancy multiplied by ADR. It combines how full you are and how much you charge into a single measure of room revenue performance.
Example: 70 percent occupancy and an ADR of 100 gives a RevPAR of 70.
It matters because occupancy and ADR can move in opposite directions, and RevPAR shows the net effect.
Commonly misread:
- It is revenue, not profit. A high RevPAR bought with high commission and labour costs can earn less.
- It ignores revenue outside rooms, such as food and beverage.
- Using different definitions of available rooms in different periods.
Pair it with a profit-based measure such as GOPPAR to see what remains after costs.
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