Financial Glossary
RevPAR (Revenue Per Available Room)
RevPAR (Revenue Per Available Room) measures the room revenue a lodging operation generates per available room over a period, whether or not the room was occupied. It equals total room revenue divided by available room-nights, or equivalently ADR multiplied by occupancy rate. RevPAR is the headline performance metric for hotels, campgrounds, RV parks, and short-term-rental portfolios because it blends pricing and occupancy into a single number.
Problem & Application
Operators often optimize occupancy or rate in isolation, but RevPAR exposes the tradeoff between them. A campground that slashes nightly rates to fill sites may post high occupancy while RevPAR falls. Tracking RevPAR by site type, season, and booking channel shows where to push price versus volume and benchmarks performance against the prior year and the local market.
In Short
RevPAR is the single best top-line health metric for any room- or site-based hospitality business, and the foundation for revenue-management decisions.