RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.[1][2]
A few data broker companies compile RevPAR information across markets via voluntary survey and provide compiled blinded information back to the industry.[3] The STAR report is one such widely used report, and is provided by STR.[4]
Since RevPAR is a measurement for a particular period of time (say a day, or month or year) it is most often compared to the same time frame. It is often used in comparison to competitors within a custom defined market, trading area, or advertising region or a self-selected competitive set as defined by the hotel's owner or manager, which is referred to as RevPAR Index or RGI (Revenue Generating Index).[5] Comparisons are usually most meaningful when made between hotels of the same type, or with similar target customers, as different hotel types may have different operational costs and customer expectations.
Other caveats:
TRevPAR (Total Revenue Per Available Room) is another closely related performance metric in the hotel industry. It is calculated by dividing total hotel revenue (instead of guestroom revenue) by available rooms.[6]
