---
title: What Is RevPAR? Formula, Example & RevPAR vs ADR | bedsKey
description: RevPAR is room revenue divided by rooms available, or ADR × occupancy. Formula, a worked example and why hotels use it to measure performance.
canonical: https://bedskey.com/glossary/revpar/
updated: 2026-09-24
publisher: bedsKey (Innovate Solution)
---

# What is RevPAR (revenue per available room)?

**In short:** RevPAR, revenue per available room, measures how much room revenue a hotel earns for every room it has available, whether sold or not. It equals room revenue divided by room nights available, or ADR multiplied by occupancy rate, so it captures both price and occupancy in one number.

Updated September 2026

## 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](https://bedskey.com/glossary/adr/) | $80 |
| [Occupancy](https://bedskey.com/glossary/occupancy-rate/) | 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.

## Frequently asked questions

### Is RevPAR or ADR more important?

Neither alone. ADR measures price and occupancy measures volume; RevPAR combines them, so it is the usual headline performance metric for rooms revenue.

### Can RevPAR be higher than ADR?

No. RevPAR equals ADR multiplied by occupancy, and occupancy cannot exceed 100%, so RevPAR is at most equal to ADR.

### Does RevPAR include food and beverage revenue?

No. RevPAR uses room revenue only. Total revenue per available room (TRevPAR) is the metric that adds outlet and other revenue.

## Related terms

- [ADR](https://bedskey.com/glossary/adr/)
- [Occupancy rate](https://bedskey.com/glossary/occupancy-rate/)
- [Yield management](https://bedskey.com/glossary/#yield-management)
- [PMS](https://bedskey.com/glossary/pms/)
- [bedsKey Reports & Analytics](https://bedskey.com/features/reports-analytics/)
- [Full glossary](https://bedskey.com/glossary/)

## Talk to bedsKey

Book a demo: https://bedskey.com/contact/ · sales@bedskey.com