Revenue Per Available Room (RevPAR) | Practical Law

Revenue Per Available Room (RevPAR) | Practical Law

Revenue Per Available Room (RevPAR)

Revenue Per Available Room (RevPAR)

Practical Law Glossary Item 6-580-1945 (Approx. 2 pages)

Glossary

Revenue Per Available Room (RevPAR)

A metric for measuring a hotel's performance. It is calculated by dividing a hotel's total guest room revenue by the number of available rooms in a given time period. RevPAR = Room Revenue / Available Rooms.
RevPAR is often used to compare performance between competitor hotels, defined by geographical location and market segment.
RevPAR can be closely approximated by multiplying Occupancy Rate by Average Daily Rate (ADR). RevPAR = Occupancy Rate x ADR.