What does RevPAR stand for?

Revenue per Available Room: room revenue divided by the number of rooms available over a period.

How do you calculate RevPAR?

Divide room revenue by rooms available, or multiply ADR by occupancy. A hotel with a $150 ADR and 70% occupancy has a RevPAR of $105.

What is the difference between RevPAR and ADR?

ADR is revenue per occupied room, so empty rooms don't affect it. RevPAR is revenue per available room, so it reflects both rate and occupancy. RevPAR is always equal to or lower than ADR.

What is a good RevPAR for a hotel?

It depends on market and class, so compare against your competitive set using the RevPAR index (RGI). For reference, the U.S. average was $100.02 in 2025 (CoStar).

Does RevPAR include taxes or resort fees?

RevPAR uses room revenue and usually excludes taxes. Treatment of mandatory fees varies, so define it once and keep it consistent.

[ Hospitality glossary · Metric ]

What Is RevPAR? (Revenue per Available Room)

RevPAR, or Revenue per Available Room, is a hotel performance metric that measures room revenue earned per available room over a period. It's calculated by dividing total room revenue by the number of rooms available, or by multiplying average daily rate (ADR) by occupancy.

Because it combines price and occupancy in one number, RevPAR is the hotel industry's headline measure of how well a property sells its rooms.

Jump to the RevPAR calculator

How to calculate RevPAR

There are two ways, and both give the same answer:

RevPAR = Room revenue ÷ Rooms available
RevPAR = ADR × Occupancy rate
Use available room-nights for any period longer than one day.

Example: a 200-room hotel over a 30-day month has 6,000 room-nights available. It sells 4,200 of them (70% occupancy) at an ADR of $150.

Room revenue = 4,200 × $150 = $630,000
RevPAR = $630,000 ÷ 6,000 = $105
Check: $150 × 70% = $105

Count every room you could have sold, including empty ones. Rooms out of service are usually excluded, but be consistent from period to period.

Your room performance

RevPAR calculator

Work out RevPAR, ADR and occupancy for any period. Add total recognized hotel revenue to see TRevPAR.

Number of rooms

Days in period

Room-nights sold

Room-nights sold = rooms sold each night, added up over the period.

Room revenue ($)

Room revenue: exclude taxes. Include mandatory fees only if you always do.

RevPAR

$116.25

Room revenue per available room

ADR: $150.00
Occupancy: 77.5%

Available room-nights: 3,600

$150.00 ADR × 77.5% occupancy = $116.25 RevPAR

U.S. average in 2025: $100.02 (CoStar). Reference only; compare like-for-like markets, hotel classes and periods.

RevPAR counts room revenue only. TRevPAR measures total recognized hotel revenue per available room, not all guest spending or the full GMV of third-party bookings.

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What does RevPAR tell you?

Whether you're balancing rate and occupancy. A hotel can fill every room by cutting prices, or charge high rates and sit half-empty. RevPAR shows which mix earns more per room.
How you compare with competitors. RevPAR is the standard benchmark between hotels of different sizes, because it's expressed per room.
The trend. Month-on-month and year-on-year RevPAR shows whether room performance is improving.

RevPAR vs ADR vs TRevPAR

Metric	What it counts	Formula	Misses
ADR	Revenue per occupied room	Room revenue ÷ rooms sold	Empty rooms
RevPAR	Room revenue per available room	Room revenue ÷ rooms available (or ADR × occupancy)	Everything guests spend outside the room
TRevPAR	Total recognized hotel revenue per available room	Total revenue ÷ rooms available	Operating costs, profit and guest spending not recognized as hotel revenue
GOPPAR	Gross operating profit per available room	Gross operating profit ÷ rooms available	Non-operating costs; it is not net profit

ADR asks “how much are we charging?” RevPAR asks “how well are we filling and pricing rooms?” TRevPAR asks “how much recognized hotel revenue are we earning per available room?”

TRevPAR measures total recognized hotel revenue per available room. It includes rooms plus recognized non-room revenue such as F&B, spa, parking, events and ancillary income. It does not automatically include all spending by hotel guests in the destination or the full GMV of third-party marketplace transactions. When a hotel acts as an agent, its recognized revenue may be only the commission or fee.

What is a good RevPAR?

It depends on your market, hotel class and season, so the useful comparison is against your own history and your competitive set, not a single number.

For context, the U.S. average in 2025 was $100.02, down 0.3% on 2024, with occupancy of 62.3% and ADR of $160.54 (CoStar, Jan 2026). It was the first full-year RevPAR decline since 2020. In May 2026, U.S. RevPAR was $110.76, up 4.0% year on year (CoStar).

RevPAR index (RGI) compares you with your competitive set:

RGI = (Your RevPAR ÷ Comp-set RevPAR) × 100

An RGI above 100 means you're taking more than your fair share of room revenue. Below 100 means competitors are.

How to increase RevPAR

Price by demand. Raise rates when demand is strong, and use length-of-stay rules rather than blanket discounts when it's soft.
Package rather than discount. A room with a cabana, spa pass or local experience keeps the rate up while adding value. Only the room-revenue portion of the package contributes to RevPAR.
Grow direct bookings. Commission doesn't reduce RevPAR, which is measured before costs, but direct bookings tend to be higher-value: hotel-website bookings averaged $516 in 2025 against $312 through OTAs (SiteMinder). See hotel direct booking statistics.
Fill weak days with other segments. Weekday meetings, local staycations and day-use products help when they generate additional room revenue. Non-room sales contribute to TRevPAR instead.
Fix distribution leaks. Keep rates consistent across channels so you aren't undercut on your own room.

Read more about pricing, distribution and performance metrics in our guide to hotel revenue management.

Why RevPAR isn't the whole story

RevPAR counts only room revenue. But U.S. hotel guests spend about $106 off-property for every $100 on lodging, before transportation (DestinationCommerce calculation from Oxford Economics for AHLA data, 2024), on dining, recreation, retail and experiences around the hotel. Little of it shows up in the hotel's numbers.

That's why many operators track TRevPAR alongside RevPAR: it shows the recognized revenue from everything a hotel sells, not just the room. Selling more of that spend through the hotel's own channels is what we call destination commerce.

Frequently asked questions

What does RevPAR stand for?: Revenue per Available Room: room revenue divided by the number of rooms available over a period.
How do you calculate RevPAR?: Divide room revenue by rooms available, or multiply ADR by occupancy. A hotel with a $150 ADR and 70% occupancy has a RevPAR of $105.
What is the difference between RevPAR and ADR?: ADR is revenue per occupied room, so empty rooms don't affect it. RevPAR is revenue per available room, so it reflects both rate and occupancy. RevPAR is always equal to or lower than ADR.
What is the difference between RevPAR and TRevPAR?: RevPAR measures room revenue per available room. TRevPAR measures total recognized hotel revenue per available room. It includes rooms plus recognized non-room revenue such as F&B, spa, parking, events and ancillary income. It does not automatically include all spending by hotel guests in the destination or the full GMV of third-party marketplace transactions.
What is a good RevPAR for a hotel?: It depends on market and class, so compare against your competitive set using the RevPAR index (RGI). For reference, the U.S. average was $100.02 in 2025 (CoStar).
Does RevPAR include taxes or resort fees?: RevPAR uses room revenue and usually excludes taxes. Treatment of mandatory fees varies, so define it once and keep it consistent.