RevPAR (revenue per available room) = ADR × occupancy. It's the single best snapshot of rooms performance. Calculate yours below.
Revenue per available room.
RevPAR — revenue per available room — measures rooms revenue against every room you could have sold, occupied or not. Because it blends rate and occupancy into one number, it's the standard way hoteliers compare performance over time and against a competitive set.
Two equivalent formulas: RevPAR = ADR × occupancy, or RevPAR = rooms revenue ÷ available room nights. Example: an ADR of $150 at 70% occupancy gives a RevPAR of $105. A 120-room hotel earning about $4,599,000 of annual rooms revenue over 43,800 available room nights also has a RevPAR of roughly $105.
ADR tells you your average rate; occupancy tells you how full you are; RevPAR combines both, so it catches the trade-off between them. Discounting to fill rooms can lift occupancy while lowering RevPAR — which is why RevPAR, not ADR or occupancy alone, ties most directly to NOI.
RevPAR growth flows into NOI, and NOI is what lenders size loans against. Improving RevPAR — through rate discipline, channel mix, and demand generation — is often the most controllable lever for strengthening DSCR and refinance capacity.