RevPAR formula
RevPAR = Room revenue ÷ Room nights available
RevPAR = ADR × Occupancy rate
Both give the same answer.
Worked example
| Figure | Value |
|---|---|
| Rooms available | 40 |
| Room nights sold | 30 |
| Room revenue | $2,400 |
| ADR | $80 |
| Occupancy | 75% |
| RevPAR | $2,400 ÷ 40 = $60 (or $80 × 0.75) |
Why RevPAR matters
ADR rewards high prices even if rooms stay empty; occupancy rewards filling rooms even at a loss. RevPAR moves only when the combination improves:
| Scenario | Rooms sold | ADR | Occupancy | RevPAR |
|---|---|---|---|---|
| Hold the price | 30 | $80 | 75% | $60 |
| Discount to fill | 38 | $65 | 95% | $61.75 |
| Push the price | 24 | $95 | 60% | $57 |
In this example discounting wins by a small margin, but it also means more housekeeping and more wear, which RevPAR does not show. For that reason many hotels also track profit per available room.
Limits of RevPAR
RevPAR counts room revenue only, so restaurant, room-service and other outlet takings are left out. It is also sensitive to the definition of "available": be consistent about whether rooms taken out of order for repairs are counted.
How bedsKey reports RevPAR
bedsKey shows occupancy %, ADR, RevPAR and room nights by day, week, month or a custom range, with a manager's flash report for yesterday and month-to-date against the same period last year. Outlet revenue from the restaurant, bar and room service is reported separately in the revenue breakdown, by transaction code and category.