RevPAR — Revenue Per Available Room

What is RevPAR?

RevPAR — Revenue Per Available Room — is the most widely used performance metric in hotel revenue management. It measures how effectively a property generates room revenue relative to its total available inventory, combining occupancy and rate into a single number.

How to calculate RevPAR

Two methods. Both give the same result.

Method 1: RevPAR = ADR × Occupancy %

Method 2: RevPAR = Total Room Revenue ÷ Total Rooms Available

Example: A 200-room hotel achieves 80% occupancy at an ADR of $150. RevPAR = $150 × 0.80 = $120. Or: 160 rooms sold × $150 = $24,000 ÷ 200 rooms available = $120.

What RevPAR tells you

RevPAR is a useful benchmarking tool because it accounts for both rate and occupancy in one number. A hotel cannot inflate RevPAR simply by raising rates if occupancy falls as a result — the metric corrects for that trade-off. It is a reliable measure for comparing performance against prior periods and against a competitive set.

What RevPAR doesn't tell you

RevPAR is the wrong scorecard. It has been for a while.

RevPAR measures gross room revenue per available room. It says nothing about what that revenue cost to generate. Consider two hotels with identical RevPAR of $120: one achieved it through high OTA volume at 18% commission; the other through a mix of direct bookings and lower-cost channels. Same RevPAR. Meaningfully different profit outcome.

RevPAR also ignores distribution cost, labour performance, ancillary revenue, and channel mix. A room sold through an expensive channel and a room sold direct at the same rate look identical in RevPAR. They are not the same booking.

RevPAR vs GOPPAR

GOPPAR — Gross Operating Profit Per Available Room — corrects for RevPAR's blind spots. It measures profit per available room after operating costs, accounting for the expenses that RevPAR ignores entirely.

A hotel optimising for RevPAR can be running a pricing strategy that actively works against profitability — filling rooms through expensive channels at rates that look strong but net poorly. A hotel that also tracks GOPPAR makes decisions that account for what the revenue actually costs to generate.

The shift from RevPAR to GOPPAR as the primary commercial scorecard is one of the defining changes in modern hotel revenue management.

How Duetto approaches RevPAR

GameChanger optimises pricing across every segment, channel, and room type — not just to maximise RevPAR, but to capture demand where it is most profitable. The HotStats integration connects revenue strategy to GOPPAR benchmarking against a verified peer set, closing the loop between the pricing decision and the profit outcome. RevPAR is still a useful number. It is just not the only one that matters.