What does revpar stand for in the hotel?

Revpar represents the average actual operating income generated by each room in the hotel.

RevPAR is the abbreviation of Revenue Per Available Room, which refers to the average actual operating income generated by each available room. The actual total income of rooms is divided by the total number of rooms, but it is generally expressed by multiplying the actual average house price by the occupancy rate, and 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.

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.