What Is RevPAR?
RevPAR, or revenue per available room, is a hotel's room revenue divided by the number of rooms it had available to sell. It is the same as average daily rate (ADR) multiplied by occupancy. Hotels use it as their main measure of how well they are filling rooms at good prices.
Last updated: October 2026
How RevPAR works
There are two ways to calculate RevPAR, and both give the same answer.
1. Room revenue divided by available rooms. 2. ADR multiplied by occupancy.
Take a 100-room hotel on one night. It sells 70 rooms at an average of $150. Room revenue is $10,500. Divide by 100 available rooms and RevPAR is $105. The second method gives the same result: occupancy is 70%, ADR is $150, and 70% of $150 is $105.
Available rooms means every room the hotel could have sold, including the empty ones. That is what makes RevPAR useful. ADR only looks at the rooms that sold, so a hotel can raise its ADR by holding out for high prices while half its rooms sit empty. Occupancy only looks at how many rooms sold, so a hotel can fill every room by selling them too cheaply. RevPAR captures both at once.
CoStar, which tracks hotel performance worldwide, calls RevPAR "the most common key performance indicator (KPI) used in the hotel industry" (CoStar). In 2025, US hotels averaged 62.3% occupancy at an ADR of $160.54, for a RevPAR of $100.02, down 0.3% on 2024. It was the first full-year fall in US occupancy and RevPAR since 2020 (CoStar via Hospitality Net, January 2026).
Why it matters for hotel distribution
RevPAR is one of the main numbers revenue decisions are judged against, and many of those decisions are about distribution. Opening a new channel, changing a rate on an OTA or running a promotion share one aim. Each tries to sell more rooms, sell them at a better price, or both.
The trade-off shows up clearly in RevPAR. Back to the 100-room hotel: if it cuts its rate to $130 and sells 85 rooms, RevPAR rises from $105 to $110.50. If it cuts to $130 and still sells only 72 rooms, RevPAR falls to $93.60. The same price change can help or hurt, depending on how much extra demand it brings.
RevPAR also has a blind spot that matters for distribution. It counts the full room price, whatever the booking cost to win. A $150 room booked direct and a $150 room booked through a channel that takes a commission count the same. That is why some hotels also track net RevPAR (NRevPAR), which subtracts commissions and other distribution costs before dividing by available rooms (Xotels glossary).
RevPAR compared with other hotel metrics
| Metric | What it measures | Formula |
|---|---|---|
| RevPAR | Room revenue across all rooms, sold or not | Room revenue ÷ available rooms |
| ADR | Average price of the rooms that sold | Room revenue ÷ rooms sold |
| Occupancy | Share of rooms that sold | Rooms sold ÷ available rooms |
| TRevPAR | All revenue, including food, spa and parking | Total revenue ÷ available rooms |
| NRevPAR | Room revenue after distribution costs | (Room revenue − distribution costs) ÷ available rooms |
CoStar notes that RevPAR "doesn't factor any revenue streams aside from room sales," which is why hotels with big restaurants, spas or event space often look at TRevPAR as well (CoStar).
Frequently asked questions
What does RevPAR stand for?
What is a good RevPAR?
How do you calculate RevPAR?
How can a hotel increase RevPAR?
Does RevPAR include taxes or food and beverage?
Related terms
See all termsWhere Jetstream fits
RevPAR rises when the right rooms are on sale, at the right rates, on every channel where guests are looking. A room that shows as sold out on one channel while it sits empty is a lost chance to sell it. Jetstream builds an AI channel manager that connects a property's reservation system to the channels where guests book. It keeps rooms, rates and availability accurate on each one.