What is RevPAR (Revenue Per Available Room)?
RevPAR (Revenue Per Available Room) is the room revenue earned per available room night. It is calculated by dividing total room revenue by room nights available, or by multiplying ADR by the occupancy rate.
Because RevPAR combines rate and occupancy in a single number, it is the most widely used metric for comparing hotels with each other and with their own past performance.
Lowering rates to fill more rooms does not always increase RevPAR. For example, if you cut ADR by 20% and occupancy rises by only 10%, RevPAR goes down. The goal of revenue management is to keep this balance at its optimal point.
Formula
RevPAR = Room revenue ÷ Room nights available = ADR × Occupancy rate
Example
€49,500 in room revenue over 660 available room nights: RevPAR = €49,500 ÷ 660 = €75. The same result comes from ADR × occupancy: €100 × 0.75 = €75.
Occupancy, ADR and RevPAR Calculator →