RevPAR (Revenue Per Available Room)
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In short
RevPAR (Revenue Per Available Room) is the most-quoted hotel performance metric. It equals total room revenue divided by total available rooms, or equivalently ADR multiplied by occupancy rate. It captures both pricing and demand in a single number.
Formula
RevPAR = Total Room Revenue / Total Available Rooms OR equivalently: RevPAR = ADR × Occupancy Rate
Worked example
RevPAR (Revenue Per Available Room)
RevPAR is the cornerstone metric of hotel revenue management because it normalises performance across properties of different sizes. A 200-room hotel and a 20-room hotel cannot meaningfully compare total room revenue, but they can compare RevPAR. Unlike ADR (which only reflects pricing on sold rooms), RevPAR penalises empty rooms — a hotel that sells half its rooms at a high rate may have a worse RevPAR than a hotel that sells more rooms at a lower rate. That is why operators look at RevPAR alongside ADR and occupancy rather than any one in isolation.
Why it matters
RevPAR is the headline metric quoted in investor decks, STR Global benchmarks, and brand reporting. Competing on RevPAR forces a hotel to balance two levers — price and demand — instead of optimising one at the expense of the other. A property that drops rates to chase occupancy will see RevPAR move only if the volume gain outweighs the price cut.
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Frequently asked questions
There is no universal benchmark — RevPAR depends on market, segment, and season. Compare your RevPAR to your competitive set using the RevPAR Index (RGI). An RGI above 100 means you are outperforming peers; below 100 means you are losing share.
No. RevPAR is calculated on net room revenue, excluding VAT, city taxes, and resort fees. This matches how STR and major brands report it.
RevPAR uses only room revenue. TRevPAR (Total RevPAR) includes ancillary revenue from F&B, spa, parking, and other guest spending. TRevPAR is more useful for full-service hotels with significant non-room income.
Yes — RevPAR ignores cost. A property running deep discounts can boost RevPAR while losing money. That is why GOPPAR (Gross Operating Profit Per Available Room) is increasingly preferred by owners.
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Written by
Maciej Dudziak
Co-founder
.NET developer with 10+ years of experience building scalable back-end systems. Specializes in .NET, Azure, and modern databases.
Published: May 15, 2026