RevPAR (Revenue per Available Room) is the standard measure of a hotel's revenue performance. It captures both pricing and demand in one number: a hotel can have high occupancy at a low rate, or high rate at low occupancy, and RevPAR shows you what is actually flowing to revenue.
Two equivalent formulas:
RevPAR = ADR × OccupancyRevPAR = Total Room Revenue ÷ Rooms Available
Example. A 30-room hotel sells 22 rooms at an ADR of ₹5,000. RevPAR = ₹5,000 × (22/30) = ₹3,667. Or directly: ₹1,10,000 ÷ 30 = ₹3,667.
RevPAR is the right number to compare a hotel against itself over time and against its competitive set (compset). It is the wrong number to compare a budget hotel against a luxury hotel — different inventory mixes produce different RevPAR ranges, and comparing them is meaningless.
The metric does not include non-room revenue (F&B, spa, parking). For that, use TRevPAR (Total Revenue per Available Room).