What does the hotel industry mean by "REVPAR"?

RevPAR stands for revenue per available room.

Refers to the average actual operating income generated by each available room, divided by the total number of rooms, but generally expressed by multiplying the actual average house price by the occupancy rate, the result is the same. Because the average house price and occupancy rate are more controllable than the total income, more hotels or restaurants are used to calculating the actual average house price × occupancy rate.

Extended data:

Calculation:

The calculation formula of RevPar: RevPar= total room income/total number of rooms.

RevPar= actual average house price × occupancy rate

Occupancy rate = total number of rooms for rent/total number of rooms.

Actual average house price = total room income/total number of rooms for rent.

The concept of revenue per room is used as the basis for measuring and analyzing hotel performance. RevPar is a widely used measure in the international hotel industry, which reflects the room income generated by each room, so it can measure the success of hotel room inventory management.

References:

Baidu encyclopedia -RevPAR