REVPAR stands for Revenue Per Available Room. This metric is crucial in hospitality to gauge the revenue accrued per available hotel room.
REVPAR is calculated by multiplying the Average Daily Rate (ADR) by the occupancy rate. This calculation helps determine what a hotel earns per available room. For example, a hotel with 100 rooms, $10,000 in daily room revenue and an 80% occupancy rate would have an ADR of $125 and a REVPAR of $100.
REVPAR analysis allows hotel operators and investors to assess performance, compare with competitors, and identify market trends.
