RevPAR (Revenue per Available Room)
The single most important top-line metric in hotel performance: room revenue divided by every room in the building, sold or not.
Revenue per Available Room (RevPAR) measures how much revenue a hotel earns for every room it has, whether or not that room is sold. It collapses occupancy and rate into a single number, which is why it has become the universal yardstick for hotel performance.
Two hotels with the same ADR can have wildly different RevPAR. RevPAR is what owners, lenders and management companies actually care about: it tells you how productively the asset is being used.
RevPAR = Room Revenue ÷ Rooms Available (or) ADR × Occupancy
A 60-room hotel earns €5,400 in room revenue on a night when 45 rooms are sold. RevPAR = €5,400 ÷ 60 = €90. Equivalently, ADR (€120) × Occupancy (75%) = €90.
Note — "Rooms available" should exclude rooms out of order (OOO) for maintenance, but include rooms held empty for any other reason.
Where this term shows up in daily operations.
Owner and lender reporting. RevPAR growth is the headline KPI in nearly every quarterly review.
Comparing your performance to a competitive set via STR / HotStats / your own comp data.
Judging trade-offs between rate and volume, pushing ADR too aggressively can drop RevPAR if occupancy collapses; the only number you can read both effects from is RevPAR.
Forecasting and budgeting. RevPAR is the cleanest input to revenue projections.
What people get wrong.
Confusing RevPAR with ADR, a hotel with €200 ADR and 30% occupancy has lower RevPAR than one with €100 ADR and 80%.
Excluding rooms out of order from the denominator without disclosure inflates RevPAR.
Using RevPAR alone to evaluate profitability. RevPAR ignores costs. GOPPAR is the right metric for that.
Comparing your RevPAR to a hotel with very different non-room revenue contribution. Total RevPAR (TRevPAR) is the apples-to-apples answer for resorts and full-service hotels.
RevPAR live in HotelBee in HotelBee.
HotelBee Reporting computes RevPAR, ADR, occupancy and pickup automatically across every room type, channel and market segment, refreshed in real time.
Is RevPAR more important than ADR?
Yes for almost every operating decision. ADR tells you about pricing in isolation; RevPAR tells you about the business. Owners and revenue managers anchor on RevPAR because it captures the revenue-volume trade-off in one number.
What is a good RevPAR growth rate?
Industry-wide, RevPAR growth of 3-5% year-over-year tracks roughly with inflation and is considered solid. High-growth markets and post-renovation properties can post double-digit RevPAR growth; mature stabilised hotels closer to flat.
What is GOPPAR and how is it different?
GOPPAR (Gross Operating Profit per Available Room) substitutes gross operating profit for room revenue. RevPAR measures revenue productivity; GOPPAR measures profit productivity. The two diverge whenever cost structure shifts.