RevPAR

RevPAR (Revenue Per Available Room) is a key performance metric in the hotel industry. It is calculated by multiplying a hotel's Average Daily Rate (ADR) by its occupancy rate.

Formula

RevPAR = ADR × Occupancy Rate

or equivalently:

RevPAR = Total Room Revenue / Total Available Rooms

Why it matters

RevPAR combines pricing and volume into a single number, which makes it the standard way to compare properties and periods. It is one of the headline figures on every PMS reporting dashboard and the number most vendor research reports benchmark against.