RevPAR, or Revenue Per Available Room, is a key performance indicator in the hotel industry. It’s a metric that combines your occupancy rate and average daily rate (ADR) to give you a clear picture of your property’s overall performance.

• It’s a more accurate metric than ADR or Occupancy alone: A high occupancy rate doesn’t necessarily mean high revenue if your rates are low. Similarly, a high ADR doesn’t reflect your performance if your rooms are empty. RevPAR provides the full picture.
• It helps with strategic decision-making: Use your RevPAR to compare your performance to competitors (your “comp set”), analyze the effectiveness of your pricing and marketing strategies, and forecast future revenue.