RevPAR

RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.[1][2] However, if the calculation uses total hotel revenue instead of guestroom revenue it equals TRevPAR (Total Revenue Per Available Room).[3] TRevPAR is another closely related performance metric in the hotel industry.

Since RevPAR is only a measurement for a point in time (say a day, or month or year) it is most often compared to the same time frame. It is often used in comparison to competitors within a custom defined market, trading area, or advertising region or a self-selected competitive set as defined by the hotel's owner or manager, which is referred to as RevPAR Index or RGI (Revenue Generating Index).[4] Comparisons are usually most meaningful when made between hotels of the same type, or with similar target customers, as different hotel types may have different operational costs and customer expectations.

A few data broker companies compile RevPAR information across markets via voluntary survey and provide compiled blinded information back to the industry.[5] The STAR report is one such widely used report, and is provided by STR.[6]

Other Caveats:

• Successful RevPAR numbers differ from market to market based on demand and other factors.
• Best compared across like time periods. For example, it is proper to compare RevPAR on a Friday only versus other Fridays.
• Best compared across similar seasonal time periods. For example, comparing results from the Christmas week with the same a year previous is more credible than with a non-holiday week.