What is RevPAR?
Revenue Per Available Room (RevPAR) blends price and occupancy into one number: how much room revenue you generate for every room you could have sold, whether it sold or not. It is the single best gauge of how well you are turning capacity into revenue.
How to calculate RevPAR
RevPAR = Total Room Revenue / Total Available Rooms. You can also calculate it as ADR x Occupancy.
Example: $24,000 in room revenue with 200 available room-nights gives $24,000 / 200 = $120.00. (Equivalently, a $150 ADR at 80% occupancy.)
Why RevPAR matters
- It rewards the balance of rate and occupancy, not just one of them.
- It is the standard for comparing performance period over period and against a comp set.
- It exposes whether discounting to fill rooms actually grew revenue.
How to improve RevPAR
- Optimize rate and occupancy together with demand-based pricing.
- Capture more direct bookings to lift net revenue per room.
- Lengthen stays and reduce gaps with minimum-stay and orphan-night rules.