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RevPAR (Revenue Per Available Room)

RevPAR measures the revenue a hotel generates per available room, whether the room is occupied or not. It combines occupancy and average daily rate (ADR) into one number, making it the single best top-line metric for revenue management.

Formula
RevPAR = ADR × Occupancy Rate (or Total Room Revenue ÷ Total Available Rooms)
Why it matters

RevPAR is the metric ownership and investors track. A hotel with high ADR but low occupancy can have the same RevPAR as a hotel with low ADR and high occupancy — the question is which mix maximizes contribution margin.

See RevPAR (Revenue Per Available Room) in action.

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