RevPAR (Revenue per Available Room)

RevPAR (Revenue per Available Room) is a key hotel metric that measures how well a property is generating revenue based on its available rooms. It is calculated by multiplying the hotel's average daily rate (ADR) by its occupancy rate or by dividing total room revenue by the number of available rooms. This metric helps assess a hotel’s performance by indicating how effectively it fills its available capacity to generate income. A higher RevPAR suggests better revenue management and demand; it’s a useful indicator for comparing hotels or tracking performance over time.