What is the meaning / definition of RevPAR in the hospitality industry?
When an analysis is carried out, RevPAR figures can be compared to RevPAR of the hotel during the same time frame of the previous years or to its compset.
How do you calculate RevPAR?
RevPar Formula: RevPAR = Rooms Revenue / Rooms Available
With RevPAR you can only evaluate your income as a percentage of room sales, not including any other factors that also take account into making profitability (like toursales, room service, and spa bookings).
- Alternative Formula: RevPAR = ADR (average daily rate) * % Occ (occupancy)
- Revenue Per Available Room
Gross Room Revenue