Revenue Per Available Room (RevPAR)

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The Economic Times  Nov 30  Comment 
Hotel Leela Venture Ltd is one of the leading players in the Indian hospitality industry. The company operates in both, the leisure and business segments.
Top Gun Financial Planning  Oct 8  Comment 
Marriott Internatioal (MAR) this morning reported results for their 3rd quarter ended August 31, 2009.  With 3,292 hotels and more than 570,000 rooms worldwide, Marriott is an excellent barometer of travel & leisure spending. The key metric in...
MarketWatch  Mar 26  Comment 
Credit Suisse cut its ratings on three hotel groups in Europe, saying the rate of decline for revenue per available room is accelerating across every segment and geography. It now estimates a 21% drop in U.S. RevPAR, vs. 15% previously, a Europe...
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Revenue Per Available Room is a hotel industry financial metric calculated by multiplying the Average Daily Rate by the percentage occupancy.

RevPAR can also be calculated by dividing the total room revenue in a given period (excluding discounts, sales tax and meals) by the number of available rooms in the same period. Conceptually, RevPAR reprents the success the hotel is having at filling its rooms. Increasing RevPAR means either that rates or Occupancy Rate are rising, or both.

RevPAR will vary from location to location, will fluctuate seasonally (as well as by day of the week) and over time. Generally, RevPAR numbers quoted for a hotel chain represent annual averages across all the hotel's properties.

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