What is the meaning / definition of RevPAR in the hospitality industry?
RevPAR stands for: Revenue Per Available Room
RevPAR is a very classic KPI and regarded as one of the most important financial calculations for any hotel to see how much revenue they have made within a certain period of time.
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)
Gross Room Revenue