RevPAR

RevPAR, or revenue per available room, is an important metric relevant to the hotel industry. Often it is utilized as a primary statistic indicating the overall financial performance of a property.

Note that RevPAR numbers represent a measure of performance in terms relative to a property's past results, and especially in comparison to competitors within a custom defined market, trading area, or DMA. Also, comparisons are usually best considered between hotels of the same type, or with target customers. (e.g. Full Service, Luxury, Extended Stay, Economy)

A few syndicated data companies compile RevPAR information across markets via voluntary survey, and provide compiled blinded information back to the industry.

Other Caveats:
* Successful RevPAR numbers differ from market to market based on demand, cost of living, and other factors.
* Best compared across like time periods. For example, it is proper to compare RevPAR on a Friday only versus other Fridays.
* Best compared across similar seasonal time periods. For example, comparing results from the Christmas week with the same a year previous is more credible than with a non-holiday week.

Calculation

:$RevPAR\; =\; Rooms\; Revenue\; /Rooms\; Available\; ,$

* "RevPAR" is revenue per available room,
* "Rooms Revenue" is the revenue generated by rooms sales
* "Rooms Available" is the number of rooms available for sale in the time period

An often used short cut to estimate RevPAR is to multiply Occupancy % times Average Daily Rate (ADR)
*So, Revpar (estimated) = Occ% * ADR

References