Revenue Per Available Room - RevPAR

DEFINITION of 'Revenue Per Available Room - RevPAR'

A performance metric in the hotel industry, which is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. It may also be calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.

BREAKING DOWN 'Revenue Per Available Room - RevPAR'

Keep in mind that RevPAR does not take into account revenue from other hotel services, such as restaurants, spas, golf courses, marinas, casinos etc.

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