What is RevPAR?
RevPAR stands for revenue per available room. It measures room revenue performance across all available inventory, whether rooms are sold or not.
How do you calculate RevPAR?
One common formula is ADR multiplied by occupancy rate. For example, a $250 ADR at 75% occupancy produces RevPAR of $187.50.
Why RevPAR matters
RevPAR helps hotel teams evaluate the combined effect of pricing and occupancy. A hotel can increase RevPAR by raising rate, improving occupancy, or some combination of both.