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 represents 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.