RevPAR, or revenue per available room, is a performance metric in the hotel industry, which is calculated by multiplying a hotel's average daily room rate (ADR)

Average daily rate

Average Daily Rate is a statistical unit that are often used in the lodging industry. The number represents the average rental income per occupied room in a given time period. ADR along with the property's occupancy are the foundations for the property's financial performance...

 by its occupancy rate. It may also be calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.

Since it is only a measurement for a point in time (say a day, or month or year) it is most often compared to the same time frame. It is often used in comparison to competitors within a custom defined market, trading area

Basic Trading Area

In the US, a Basic Trading Area is a geographic region defined originally in the Rand McNally Commercial Atlas and Marketing Guide and used by the FCC where a Personal Communications Service can operate...

, or DMA

Media market

A media market, broadcast market, media region, designated market area , Television Market Area , or simply market is a region where the population can receive the same television and radio station offerings, and may also include other types of media including newspapers and Internet content...

 or a self-selected competitive set as defined the hotel's owner or manager. Also, comparisons are usually best considered between hotels of the same type, or with target customers. (e.g. Full Service

Full service

Full service is a term that has many different uses. In general the term implies that the customer will receive as much service as is reasonably possible.-Gas station:...

, Luxury, Extended Stay

Apartment hotel

An Apartment Hotel is a serviced apartment complex that uses a hotel-style booking system. It is similar to renting an apartment, but with no fixed contracts and occupants can 'check-out' whenever they wish....

, Economy)

A few syndicated data companies compile RevPAR information across markets via voluntary survey, and provide compiled blinded information back to the industry.

Other Caveats:

• Successful RevPAR numbers differ from market to market based on demand and other factors.
• Best compared across like time periods. For example, it is proper to compare RevPAR on a Friday only versus other Fridays.
• Best compared across similar seasonal time periods. For example, comparing results from the Christmas
  Christmas
  Christmas or Christmas Day is an annual holiday generally celebrated on December 25 by billions of people around the world. It is a Christian feast that commemorates the birth of Jesus Christ, liturgically closing the Advent season and initiating the season of Christmastide, which lasts twelve days...
  
  week with the same a year previous is more credible than with a non-holiday week.

Calculation

• RevPAR is revenue per available room,
• Rooms Revenue is the revenue generated by rooms sales
• Rooms Available is the number of rooms available for sale in the time period

An often used short cut to estimate RevPAR is to multiply Occupancy % times Average Daily Rate (ADR)

• So, Revpar (estimated) = Occ% * ADR