Glossary

RevPAR (Revenue per available night)

RevPAR (revenue per available night) is revenue divided by all available nights, booked or not. It combines ADR and occupancy in one number: RevPAR equals ADR times occupancy. Because empty nights count, it is a better guide than ADR alone to what a unit will earn in a month against its rent.

Formula

RevPAR = ADR × occupancy

Example

$165 ADR at 65% occupancy is $107 RevPAR.

Related terms

Run the numbers yourself with the free rental arbitrage calculator.