RevPAR (Revenue Per Available Room)

Revenue Per Available Room, universally abbreviated as RevPAR and occasionally written as REVPAR or Rev.PAR depending on the platform, is a noun and one of the hospitality industry’s most relied-upon performance indicators. It originated in the hotel sector as a standard benchmarking metric and has since carried over into short-term rental management as the vacation rental industry has grown more analytically sophisticated.

The calculation can be approached from two directions that produce the same result: divide total room revenue by the total number of available rooms, or multiply ADR by the occupancy rate. A 100-room hotel that generates $10,000 in room revenue on a given night has a RevPAR of $100, even if only 80 of those rooms were occupied at $125 each. That gap between what the property earned and what it could theoretically have earned at full occupancy is precisely what RevPAR is designed to surface.

What separates RevPAR from ADR is its treatment of empty nights. ADR only measures performance on nights that actually sold, which means it can look strong even when a property is half-empty. RevPAR penalizes vacancy by spreading revenue across all available nights, occupied or not, producing a more honest picture of overall earning efficiency. A property with a high ADR and low occupancy will show that weakness immediately in its RevPAR figure.

One important limitation: RevPAR captures room revenue only and ignores ancillary income and operating costs, so a strong RevPAR does not automatically mean a profitable operation.

Related terms include ADR, occupancy rate, TRevPAR, GOPPAR, and revenue management.