What is the REVPAR indicator?

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.

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.

Suppose:

Hotel A has 200 rooms, the listing price is 400 yuan, the occupancy rate is 60%, and the average room rate is 300 yuan, RevPAR 180 yuan.

Hotel B has 200 rooms, the listing price is 400 yuan, and the room occupancy rate is 70%. The average room rate is 260 yuan, RevPAR 182 yuan.