RevPAR - Revenue Per Available Room

RevPAR (Revenue Per Available Room) is the most important number in the hotel industry, it combines pricing (ADR) and occupancy into a single figure that shows how much revenue each room is generating, whether sold or not. Formula: RevPAR = ADR × Occupancy Rate. Example: a hotel with $500 ADR at 80% occupancy has a RevPAR of $400; a hotel with $1,000 ADR at 40% occupancy has a RevPAR of $400, they're tied. RevPAR is what hotel CEOs and investors watch most closely. When the news reports "luxury hotel performance up 8% in Q3," that's typically RevPAR. As a guest, you don't see this number, but it explains why hotels sometimes offer surprise discounts (boosting occupancy when ADR is fixed).