What is RevPAR?
RevPAR (Revenue Per Available Room) measures how much revenue each room in your property generates — whether it's occupied or not. It's the single best snapshot of your rooms performance, because it combines how full you are (occupancy) with how much you charge (ADR) into one number. Two hotels can post the same occupancy or the same rate, but the one with the higher RevPAR is winning.
How to calculate RevPAR
There are two equivalent ways to calculate it:
- →RevPAR = ADR × Occupancy Rate — e.g. a $120 ADR at 65% occupancy = $78 RevPAR.
- →RevPAR = Total Room Revenue ÷ Total Available Rooms — the same result, from your revenue and room count.
RevPAR vs ADR vs occupancy
Occupancy
The % of your available rooms that are sold. Rooms sold ÷ rooms available.
ADR
Average Daily Rate — the average price of the rooms you actually sold.
RevPAR
ADR × occupancy. Revenue per available room — it ties price and occupancy together.
How to improve your RevPAR
Because RevPAR is ADR × occupancy, you raise it by improving either lever without sacrificing the other:
- →Raise rates on high-demand dates before they sell out (watch your on-the-books and pickup).
- →Fill low-demand nights with targeted promotions instead of blanket discounts.
- →Shift bookings to your commission-free direct channel so more of each rate stays with you.
- →Use occupancy forecasting to catch soft weeks early — while a rate change still helps.
A good PMS does the heavy lifting here — a real-time dashboard, forecasted occupancy, and channel performance in one place. Read Revenue Management for Independent Hotels for the full playbook, or see how InnSyst's analytics track ADR, RevPAR, and occupancy automatically.