Revpar

Revenue per available room (revpar) is the key indicator of performance for hotels. It reflects occupancy and rates:

revpar = occupancy ×average room rate

where occupancy is the percentage of available room-nights occupied.

Trends in revpar are very important. Revpar can be used to compare companies only if they have broadly similar hotels - similar quality in similar locations. This is often possible as most hotels companies give regional breakdowns of revpar and this can be compared.

Revpar only measures the performance of the core business of hotels, letting rooms. Many hotels make much of their revenue from additional services such as food and drink.