Revenue Per Available Room (RevPAR) is perhaps the most reliable and common measure of success for a hotel. As opposed to ADR, RevPAR takes into account your occupancy rate. For example if using ADR as a measure of success, you could simply sell one room a year at $1000 and your ADR would remain $1000 but you have no in fact been very successful.
By calculating your RevPAR and taking into account your occupancy, you are creating a more balanced and truthful display of how well your business is doing.
RevPAR = Average income per night ÷ Total number of rooms
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RevPAR = Average Daily Rate (ADR) x Occupancy Rate
For more information on RevPAR and how you can increase it within your hotel, check out our blog post.
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