Revenue Per Available Room (RevPAR) is a performance metric that measures the revenue generated per available rental night, regardless of whether it was booked. It is calculated by multiplying ADR by occupancy rate, or by dividing total revenue by the total number of available nights. RevPAR gives property managers a single metric that accounts for both pricing and occupancy, making it useful for benchmarking overall property performance.
Why this matters for property managers
By capturing occupancy and rate in one number, this metric prevents the trap of optimizing one at the expense of the other. It also lets a property be benchmarked against a competitive set on equal footing, revealing whether underperformance comes from empty nights or weak pricing. That diagnosis points directly to which lever to pull to lift income.
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