RevPAR

Revenue Per Available Room -- a hotel's room revenue divided by the number of available room-nights, whether or not they were occupied, shown as a dollar figure. It is the single most important hotel operating metric because it combines the two levers of the business into one number: how full the hotel was (occupancy) times how much each occupied room fetched (average daily rate). A hotel can lift RevPAR by filling more rooms or by charging more, and the mix matters -- rate-driven RevPAR growth flows to profit more richly than occupancy-driven growth, which brings added cost. A crucial comparability caveat: an operator's SYSTEMWIDE RevPAR (spanning thousands of franchised hotels) and a REIT's COMPARABLE RevPAR (a fixed owned pool) are not the same measure, so we never compare across those families.

Related terms

Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ADR · ARPU · Average Length Of Stay

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