Revenue per Available Room (RevPAR)
Total room revenue divided by total available rooms; the primary hotel revenue performance metric
What is Revenue per Available Room (RevPAR)?
Revenue per available room (RevPAR) is the room revenue a hotel earns for every room available, whether or not it was sold. It combines pricing and occupancy into one measure.
It is the standard headline measure of hotel performance because it shows how well capacity is turned into revenue.
How this KPI is measured
- Function
- Sales
- Sub-function
- Room Revenue
- Industry
- Hospitality & Hotels
- Type
- Lagging
- Impact
- Revenue
- Unit
- $
- Measurement frequency
- Daily / Monthly
- Formula
- Total room revenue / Total available room nights
How to calculate it
Divide total room revenue by total available room nights.
For example, if a hotel earned 300,000 from 4,000 available room nights, RevPAR is 75.
The same number can be reached by multiplying occupancy by average daily rate, which shows whether a change comes from filling more rooms or charging more.
Where it is used
Judging hotel performance
Track one overall measure.
Benchmarking
Compare with competitors.
Finding the cause of change
Split into occupancy and rate.
How to improve it
Tips and common mistakes
- RevPAR ignores other revenue such as food and spa. Use total revenue per room for that.
- Exclude out-of-order rooms consistently.
- Compare against similar hotels.
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