notitur.com August 24, 2026

Revenue

RevPAR

Revenue per available room blends price and occupancy into one figure. You get it by multiplying ADR by occupancy, or dividing room revenue by the rooms available. It is the headline metric for hotel performance.

Example With a 120 euro ADR and 70 percent occupancy, RevPAR is 84 euros.

Related terms

Revenue

ADR

The average daily rate is the average revenue per occupied room over a period. You get it by dividing room...

 Revenue

Occupancy

Occupancy is the percentage of rooms sold out of those available over a period. It is one of the three basic...

 Revenue

RevPAR index

The RevPAR index shows how a hotel performs against its competitive set. It is your RevPAR divided by the...

 Revenue

TRevPAR

Total revenue per available room looks at everything the hotel earns per room, not just accommodation. It...

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FAQ

What is RevPAR?
RevPAR stands for Revenue Per Available Room, and it is the key metric to measure a hotel's financial performance by combining price and occupancy into one figure. For instance, if a hotel has an ADR of $200 and 70% occupancy, its RevPAR is $140.
How is RevPAR calculated?
You calculate RevPAR by multiplying the average daily rate (ADR) by the occupancy rate, or by dividing total room revenue by total available rooms. For a hotel with 100 rooms and $12,000 in daily revenue, RevPAR is $120.
What is RevPAR used for and how does it differ from ADR?
RevPAR is used to assess overall hotel performance by factoring in both pricing and occupancy, whereas ADR only tracks the average price of rooms actually sold. RevPAR helps compare hotels of different sizes and reveals whether a price increase is offsetting a drop in occupancy.

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