RevPAR is the room revenue a hotel earns per available room, whether or not it was sold. Formula: RevPAR = Room Revenue / Available Rooms, or equivalently ADR x Occupancy Rate. It is the industry's headline room metric because it captures price and occupancy in one number.
Revenue per Available Room (RevPAR) measures how well a hotel turns its entire room inventory into revenue. Unlike ADR, which looks only at rooms actually sold, RevPAR spreads room revenue across every room that was available to sell. That single change makes it a truer measure of overall room performance, because an empty room still counts against you.
RevPAR reflects room revenue only. It does not include F&B, spa, upsells, or other ancillary income, and it says nothing about cost or profit.
There are two equivalent ways to calculate it:
RevPAR = Total Room Revenue / Total Available Rooms
RevPAR = ADR x Occupancy Rate
A 100-room hotel sells 80 rooms in one night at a $150 ADR, booking $12,000 in room revenue.
RevPAR = $12,000 / 100 = $120
Or, using the second formula:
RevPAR = $150 ADR x 80% occupancy = $120
Over a 30-night month, that same 100-room property has 3,000 available room-nights. If it earns $360,000 in room revenue:
RevPAR = $360,000 / 3,000 = $120
RevPAR is the standard way hotels compare room performance across periods, properties, and competitors, because it blends the two things ADR and occupancy each miss on their own. A $200 ADR looks strong until you learn occupancy was 50% (RevPAR $100). A $150 ADR at 80% occupancy quietly wins (RevPAR $120).
Because occupancy can never exceed 100%, RevPAR is always less than or equal to ADR. If your RevPAR sits far below your ADR, occupancy is the lever holding you back; if it sits close to ADR, you are filling rooms but may have pricing headroom.
Absolute RevPAR only means so much on its own. Revenue teams compare their RevPAR to a competitive set using the RevPAR Index (also called RGI):
RevPAR Index = (Your RevPAR / Competitive Set RevPAR) x 100
An index of 100 means you are capturing your fair share of the market. Above 100 means you are outperforming your comp set; below 100 means you are leaving share on the table.
Since RevPAR = ADR x Occupancy Rate, you raise it by improving either lever without cannibalizing the other.
Upselling is a fast RevPAR lever because it works on rooms you have already sold. Guestara's hotel upsell software automates upgrade and add-on offers across the guest journey, and hotels using it see up to 200% more upsells, pushing ADR and RevPAR up together.
RevPAR (Revenue per Available Room) measures hotel room revenue per available room.
RevPAR is the room revenue a hotel earns per available room, whether or not it was sold. Formula: RevPAR = Room Revenue / Available Rooms, or equivalently ADR x Occupancy Rate. It is the industry's headline room metric because it captures price and occupancy in one number.
Revenue per Available Room (RevPAR) measures how well a hotel turns its entire room inventory into revenue. Unlike ADR, which looks only at rooms actually sold, RevPAR spreads room revenue across every room that was available to sell. That single change makes it a truer measure of overall room performance, because an empty room still counts against you.
RevPAR reflects room revenue only. It does not include F&B, spa, upsells, or other ancillary income, and it says nothing about cost or profit.
There are two equivalent ways to calculate it:
RevPAR = Total Room Revenue / Total Available Rooms
RevPAR = ADR x Occupancy Rate
A 100-room hotel sells 80 rooms in one night at a $150 ADR, booking $12,000 in room revenue.
RevPAR = $12,000 / 100 = $120
Or, using the second formula:
RevPAR = $150 ADR x 80% occupancy = $120
Over a 30-night month, that same 100-room property has 3,000 available room-nights. If it earns $360,000 in room revenue:
RevPAR = $360,000 / 3,000 = $120
RevPAR is the standard way hotels compare room performance across periods, properties, and competitors, because it blends the two things ADR and occupancy each miss on their own. A $200 ADR looks strong until you learn occupancy was 50% (RevPAR $100). A $150 ADR at 80% occupancy quietly wins (RevPAR $120).
Because occupancy can never exceed 100%, RevPAR is always less than or equal to ADR. If your RevPAR sits far below your ADR, occupancy is the lever holding you back; if it sits close to ADR, you are filling rooms but may have pricing headroom.
Absolute RevPAR only means so much on its own. Revenue teams compare their RevPAR to a competitive set using the RevPAR Index (also called RGI):
RevPAR Index = (Your RevPAR / Competitive Set RevPAR) x 100
An index of 100 means you are capturing your fair share of the market. Above 100 means you are outperforming your comp set; below 100 means you are leaving share on the table.
Since RevPAR = ADR x Occupancy Rate, you raise it by improving either lever without cannibalizing the other.
Upselling is a fast RevPAR lever because it works on rooms you have already sold. Guestara's hotel upsell software automates upgrade and add-on offers across the guest journey, and hotels using it see up to 200% more upsells, pushing ADR and RevPAR up together.
ADR divides room revenue by rooms sold; RevPAR divides it by rooms available. ADR shows pricing power; RevPAR shows how well you monetize your whole inventory.
No. Because occupancy is at most 100%, RevPAR is always equal to or lower than ADR. They are equal only at full occupancy.
No, RevPAR is room revenue only. To include ancillary spend, use TRevPAR; to factor in cost and profit, use GOPPAR.
There is no universal figure. Judge it against your competitive set (via RevPAR Index) and your own trailing periods rather than an absolute number.
