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Revenue
RevPARRevenue Per Available Room
Revenue Per Available Room measures revenue earned for every night the property was available to book, whether or not it sold. It combines rate and occupancy into one figure, which makes it the standard way to compare performance between periods, properties or markets.
How RevPAR is calculated
RevPAR = ADR × Occupancy rate (or Room revenue ÷ Nights available)
Why RevPAR matters for your revenue
RevPAR prevents the most common misreading of performance: a high nightly rate on a mostly empty calendar. Because it blends both levers, it is the figure to watch when judging whether a pricing strategy actually increased earnings.
Related terms
- ADRAverage Daily Rate is the average price paid per booked night over a period. It is calculated from room revenue divided by the number of nights actually sold, so it describes the rate guests paid rather than the rate advertised, and it ignores nights that stayed empty.
- RevPANRevenue Per Available Night is the short-term rental equivalent of RevPAR, applied to a whole property rather than a hotel room. It divides total booking revenue by every night the property was available in the period, including nights blocked for maintenance only if they were bookable.
- Occupancy rateOccupancy rate is the share of available nights that were booked in a period, expressed as a percentage. Nights the owner blocked for personal use are normally excluded from the available count, so the figure reflects commercial performance rather than calendar availability.
- Revenue managementRevenue management is the discipline of selling the right night, at the right price, through the right channel, to maximise total income over a period. It combines pricing, stay restrictions, channel strategy and forecasting rather than treating rate alone.
Revenue Management at Pinnacle Path
RevPAR sits inside our revenue management work. See how we apply it market by market.