Revenue
RevPAR
Revenue Per Available Room
RevPAR (Revenue Per Available Room) measures how much room revenue a hotel earns for every room it has available, whether or not that room was sold. It combines rate and occupancy into a single number, which is why it is the most widely used performance metric in hotel revenue management.
Formula
RevPAR = Room revenue ÷ Available room-nights
Equivalently, RevPAR = ADR × Occupancy rate. Both give the same result.
RevPAR answers a question neither occupancy nor rate can answer alone: is the hotel actually making money from its inventory? A property can run at 95% occupancy by discounting heavily, or hold a high rate while half the rooms sit empty. Both look good on one metric and bad on the other. RevPAR forces the two together.
Because the denominator is available rooms rather than rooms sold, RevPAR is comparable across properties of different sizes and across periods with different levels of demand. It is the number most owners, asset managers and lenders look at first, and the basis for most competitive benchmarking.
Its main limitation is that it only counts room revenue. A resort earning heavily from food and beverage, spa or activities is undersold by RevPAR alone, which is why properties with significant non-room revenue also track TRevPAR and GOPPAR.
Worked example
A 120-room hotel over a 30-day month has 3,600 available room-nights. If it earned €540,000 in room revenue, RevPAR is €150. The same figure comes from an ADR of €200 at 75% occupancy.
Venli agents pull RevPAR, ADR and occupancy from your PMS and RMS on a schedule and flag the movements worth a human look — rather than waiting for someone to open a report.
Frequently asked questions
What is RevPAR?
RevPAR (Revenue Per Available Room) is the room revenue a hotel earns for every room it has available, sold or not. It combines rate and occupancy into one figure, which is why it is the standard measure of hotel revenue performance and the basis for most competitive benchmarking.
How do you calculate RevPAR?
Divide total room revenue by the number of available room-nights in the period. A 120-room hotel over 30 days has 3,600 available room-nights; €540,000 of room revenue gives a RevPAR of €150. You can also multiply ADR by occupancy rate — both methods give the same answer.
What is RevPAR in the hotel industry?
In hotels, RevPAR is the headline performance metric owners, asset managers and lenders look at first. Because the denominator is available rooms rather than rooms sold, it is comparable across properties of different sizes and across periods with very different demand.
What does RevPAR mean?
RevPAR stands for Revenue Per Available Room. It answers a question neither occupancy nor rate can answer alone: whether the hotel is actually making money from its inventory. Its main limitation is that it counts only room revenue, which is why resorts also track TRevPAR and GOPPAR.
Related terms
- ADR — ADR (Average Daily Rate) is the average price a hotel actually achieved per room sold over a given period. It measures pricing performance on its own, with occupancy deliberately excluded.
- Occupancy Rate — Occupancy rate is the percentage of a hotel’s available rooms that were actually sold in a given period. It measures how much of the inventory the hotel managed to fill, independent of what it charged.
- TRevPAR — TRevPAR (Total Revenue Per Available Room) measures all revenue a hotel earns per available room — rooms, food and beverage, spa, events and any other outlet — not just the room rate.
- GOPPAR — GOPPAR (Gross Operating Profit Per Available Room) measures gross operating profit for every available room, capturing both revenue performance and how efficiently the hotel is run.
- Yield Management — Yield management is the practice of continuously adjusting room rates and availability by segment and channel to extract the most revenue from a fixed, perishable inventory of rooms.