What is RevPAR?
Also known as Revenue per available room
RevPAR is the revenue for each available night, whether sold or not. It is calculated by multiplying the occupancy rate by ADR, or by dividing total room revenue by total available nights. It is the only figure that captures price and demand at once.
Use RevPAR to compare two units of different sizes, or the same month in different years. Occupancy or ADR on its own can mislead.
Related
- Occupancy rateOccupancy rate is the percentage of nights sold out of the total nights available in a per…
- ADRADR is the average room revenue for each night sold, that is, total room revenue divided b…
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