what is revenue per available room revpar 
revenue per available room revpar is a metric used in the hospitality industry to measure hotel performance the measurement is calculated by multiplying a hotel s average daily room rate adr by its occupancy rate revpar is also calculated by dividing a hotel s total room revenue by the total number of available rooms in the period being measured an increase in a property s revpar most likely indicates an improvement in occupancy rate understanding revenue per available room revpar revpar is a metric used in the hospitality industry to assess a property s ability to fill its available rooms at an average rate an increase in a property s revpar means that its average room rate or its occupancy rate is improving however an increase in revpar does not necessarily mean better performance revpar fails to consider the size of a hotel therefore revpar alone is not a good measure of overall performance a hotel may have a lower revpar but still have more rooms that earn higher revenues in addition certain larger rooms i e penthouses may overcompensate for lower quality rooms that are not being checked or are unavailable like other financial metrics revpar is best suited as a comparison tool a hotel can compare its own revpar statistics over time to see whether the metric fluctuates with seasons or changes due to consumer preference in addition revpar can be used to compare against other hotels in the area to get a better sense of how one hotel may be performing compared to other keep in mind that this financial performance is limited to just revenue and does not consider expenses it may be difficult to compare revpar with other hotels because the revenue and occupancy information may not be readily available therefore management must be prepared to set internal revpar targets 