12. What does RevPAR mean?

Q: 12. What does RevPAR mean?

RevPAR is revenue per available room. This is found by dividing the total revenue by total number of rooms or multiplying ADR by OCC% for any given time period. For example, if your property has 87 rooms and sold 57 which resulted in total revenue of $5,984, while the ADR is about $105 the RevPAR is only about $69. For every empty room in the hotel, you still only generated $69. The greater your occupancy, the closer your RevPAR is to your ADR. The goal is for RevPAR to equal ADR, also known as the perfect sell. RevPAR = Total Rooms Revenue/Rooms Available for Sale