Revenue metrics
What is RevPAR?
RevPAR, or revenue per available room, is a hotel's room revenue divided by the number of room nights it had available to sell in a period. It combines price and occupancy into one number, which makes it the standard way to compare hotels of different sizes.
RevPAR formula
RevPAR = room revenue ÷ room nights available (or ADR × occupancy)
A 40-room hotel has 1,200 room nights available in a 30-day month. If it earns ₹45,00,000 in room revenue, RevPAR is ₹45,00,000 ÷ 1,200 = ₹3,750. The same answer comes from ADR (₹5,000) multiplied by occupancy (75%). You can work it out with the RevPAR, ADR and occupancy calculator.
What RevPAR tells you, and what it misses
In StaySynq
StaySynq shows occupancy, ADR and RevPAR live from your own bookings, by day, month or channel.
Common questions
What is the difference between RevPAR and ADR?
ADR divides room revenue by rooms sold. RevPAR divides it by all rooms available, so empty rooms pull it down. RevPAR is always equal to or lower than ADR.
Is a higher RevPAR always better?
Usually, but not if it comes from discounting through high-commission channels or from occupancy that costs more to service than it earns. Check profit per room as well.
Related terms
- ADR (average daily rate)ADR, or average daily rate, is the average price a hotel earns for each room it sells in a period. It is calculated by dividing room revenue by the number of room nights sold. ADR shows how well you are pricing, but says nothing about how many rooms stayed empty.
- Occupancy rateOccupancy rate is the percentage of a hotel's available room nights that were sold in a period. It is calculated by dividing room nights sold by room nights available. It shows how full the hotel was, but not what guests paid.
- TRevPARTRevPAR, or total revenue per available room, is all of a hotel's revenue (rooms, food and beverage, banquets, spa and other income) divided by the room nights available in a period. It shows how much each available room earns for the whole business, not just the rooms department.
- GOPPARGOPPAR, or gross operating profit per available room, is a hotel's gross operating profit divided by the room nights available in a period. Unlike RevPAR, it takes operating costs into account, so it shows how much profit each available room produces.
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