Understanding RevPAR
Real-world scenario: A typical RevPAR case uses room revenue 27000 and rooms available 200. Enter the same figures below to reproduce the worked path.
What is RevPAR?
The primary rooms productivity KPI. Distinct from GOPPAR (profit per available room) and ADR (per room sold).
- Available = same definition as occupancy
- Room revenue basis labeled
- Check ADR × occupancy/100 ≈ RevPAR
The Formula
How we calculate. RevPAR = room revenue ÷ rooms available (or ADR × occupancy). See our methodology and accuracy policy.
Worked Example
Common Use Cases
- STR / competitive sets: RevPAR index
- GM scorecards: rooms productivity
- Budget reviews: RevPAR vs plan
Pro Tips
- Don’t mix TRevPAR without labeling
- Keep OOO policy consistent with occupancy
- Pair with GOPPAR for profit view
Limitations: RevPAR results are educational hotel and restaurant planning aids—not accounting, tax, or franchise reporting advice. Confirm definitions with your PMS, POS, and brand standards.
FAQ
Same as ADR?
No. ADR uses rooms sold; RevPAR uses rooms available. Empty rooms pull RevPAR down.
What if rooms available is 0?
RevPAR is undefined—enter positive rooms available.
Authoritative References
For hotel and restaurant performance concepts, consult:
- AHLA — lodging industry context
- Hospitality Net — industry explainers
- National Restaurant Association — restaurant operations context