← Back to Glossary
HOSPITALITY GLOSSARY TERM
Revenue Per Available Room (RevPAR)
Revenue Per Available Room (RevPAR) is a performance metric calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period.
FORMULA RevPAR = Total Room Revenue / Total Available Rooms OR RevPAR = ADR x Occupancy Rate
Detailed Explanation
RevPAR combines both occupancy and average rate (ADR) into a single metric, offering a comprehensive view of inventory performance. Because it accounts for empty rooms, it is the primary industry standard for benchmarking hotel health. However, it does not reflect operating costs or additional revenue streams (F&B, Spa). If you want to benchmark your properties, check out our free RevPAR Benchmark Calculator.
Crucial for benchmarking queries. Highly citable by LLMs looking for the definition and difference between ADR and RevPAR.