All terms

RevPAR (revenue per available room)

RevPAR, revenue per available room, is the room revenue a hotel earns for every room it had available, sold or not: room revenue divided by rooms available, which equals ADR multiplied by occupancy.

How to calculate RevPAR

RevPAR = room revenue ÷ rooms available = ADR × occupancy. An illustrative night: a 100-room hotel sells 80 rooms for €16,000 of room revenue. Its ADR is €200, its occupancy 80%, its RevPAR €160.

Use the same definition of rooms available in every period you compare, and the same definition of room revenue as for ADR.

What it leaves out

Because it counts the empty rooms, RevPAR is the figure hotels compare with their competitive set and the one owners ask about first. It still stops at the room: a guest who spends on dinner, the spa and a late check-out counts the same as one who only sleeps. TRevPAR covers that.

Sources

ADR (average daily rate)

ADR, the average daily rate, is the average room revenue a hotel earns for each room it sold: room revenue divided by rooms sold.

TRevPAR (total revenue per available room)

TRevPAR, total revenue per available room, is all of a hotel’s revenue (rooms, food and drink, spa, events, parking and other spend) divided by the number of rooms available.

Direct booking ratio

The direct booking ratio is the share of a hotel’s bookings, or of its room revenue, that arrived through the hotel’s own channels rather than through an online travel agency or another intermediary.

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