Revenue per Available Room


Revenue per Available Room

In the hotel industry, a measure of the average daily rate for a room multiplied by the number of rooms used. It is calculated by taking the total revenue for a particular period of time and dividing by the number of rooms rented over the same period. It is important to note that RevPAR only accounts for revenue from room rental and does not include other sources of revenue, such as that from room service or alcohol.

RevPAR (revenue per available room)

A value used to compare investments in comparable hospitality facilities. It is the total room revenue for the period divided by the average number of available rooms.