Revenue per Available Room (RevPAR)

Revenue per Available Room (RevPAR) is a key hotel performance indicator that measures room revenue generated per available room during a specific period. It combines Occupancy Rate and Average Daily Rate (ADR) to assess how effectively a hotel generates revenue from its available room inventory. RevPAR helps hoteliers monitor room revenue performance, identify trends, and compare results across properties or reporting periods.

Formula: RevPAR = Total Room Revenue ÷ Available Room-Nights

Alternative Formula: RevPAR = ADR × Occupancy Rate (expressed as a decimal)