What is RevPAR?
RevPAR stands for Revenue Per Available Room. It is one of the most widely used hotel performance metrics because it combines pricing and occupancy into a single number.
How to calculate RevPAR
The standard RevPAR formula is:
RevPAR = ADR × Occupancy Rate
If occupancy is entered as a percentage, divide it by 100 before multiplying.
Simple example
If your average daily rate is 120 and your occupancy is 75%, your RevPAR is 90.
Why RevPAR matters
RevPAR helps hotels understand how effectively they are generating room revenue from their available inventory. A higher RevPAR may come from stronger pricing, higher occupancy, or both.
RevPAR vs ADR
ADR only shows the average selling price of occupied rooms, while RevPAR reflects both price and occupancy. That makes RevPAR more useful when comparing overall room revenue performance.
You can also explore the OTA Commission Calculator, learn more about hotel PMS software, or discover the Roomnix Booking Engine.