RevPAR (Revenue Per Available Room)

In shortRevPAR (Revenue Per Available Room) is room revenue divided by all of a hotel's available rooms, sold or not; it combines price and occupancy in one number.

ADR looks only at sold rooms; RevPAR also counts the empty ones. That makes it a more balanced measure for comparing two hotels, or two periods of the same hotel.

RevPAR also equals ADR multiplied by occupancy. Cutting price to fill more rooms and raising price to sell fewer can lead to the same RevPAR; which is more profitable depends on the cost per occupied room.