REVPAR Full Form in Hotel is Revenue Per Available Room. In the hospitality sector, hotels are evaluated based on their (RevPAR). Multiplying a hotel’s ADR (average daily rate) by its occupancy yields this metric. Similar to ADR, RevPAR is determined by dividing the hotel’s total revenue during the measurement period by the number of rooms available for guests.
The hotel sector uses a number called revenue per available room (RevPAR) to evaluate businesses. If a hotel’s RevPAR is going up that suggests business is good for either its median hotel’s room rate and its occupancy rate. However, rising RevPAR does not always indicate improved efficiency.
RevPAR can be determined in two different ways. To begin, hotel management can divide the total revenue from room rentals by the number of available rooms. Keep in mind that the overall number of rooms’ available takes into account both occupied and unoccupied options.
Hotel management can also determine RevPAR by multiplying the average everyday rate of revenue by its rate of occupancy. This approach, which depends on total occupancy rather than total availability, is more suited and accurate for complete booked hotels with a small number of empty rooms.