RevPAR

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RevPAR, or revenue per available room, is an important metric relevant to the hotel industry. Often it is utilized as a primary statistic indicating the overall financial performance of a property.

Note that RevPAR numbers represent a measure of performance in terms relative to a property's past results, and especially in comparison to competitors within a custom defined market, trading area, or DMA. Also, comparisons are usually best considered between hotels of the same type, or with target customers. (e.g. Full Service, Luxury, Extended Stay, Economy)

A few syndicated data companies compile RevPAR information across markets via voluntary survey, and provide compiled blinded information back to the industry.

Other Caveats:

  • Successful RevPAR numbers differ from market to market based on demand, cost of living, and other factors.
  • Best compared across like time periods. For example, it is proper to compare RevPAR on a Friday only versus other Fridays.
  • Best compared across similar seasonal time periods. For example, comparing results from the Christmas week with the same a year previous is more credible than with a non-holiday week.

[edit] Calculation

RevPAR = A/Rooms Available \,


  • RevPAR is revenue per available room,
  • A is the ADR, the average price per room sold,

[edit] References

Fairmas RevPAR data with a focus on Germany
MKG Worldwide RevPAR data worldwide
PKF Consulting: RevPAR data for select US cities
Smith Travel Research: RevPAR data with a focus on the US
STR Global: Global RevPAR data
StreetAuthority: RevPAR defined
TRI Consulting RevPAR data for Europe with a focus on the UK




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