RevPAR, or revenue per available room, is the standard hotel measure of how much room revenue a property earns for each room it could sell. It combines occupancy and average daily rate, so a hotel can see whether it is filling rooms by giving rate away. A full hotel at a collapsed rate can look successful on occupancy and poor on RevPAR.
The measure is widely used in hotel reporting. Stayvika does not treat it as a company invention, and this page does not publish benchmark RevPAR for any Indian city. The value is in reading one hotel consistently.
Why occupancy alone misleads
Occupancy answers a volume question: what share of sellable rooms were sold? It does not say what those rooms earned. A move from 60 percent to 75 percent occupancy is not a better result if the extra rooms were sold at a rate that pulls the average down by more than the volume adds.
Average daily rate has the opposite blind spot. ADR can rise because the hotel sold only its best rooms on the best nights and left the rest empty. RevPAR is the figure that notices both mistakes, because empty rooms and cheap rooms both reduce room revenue relative to the rooms the hotel had.
Keep the inputs stable
RevPAR is only comparable with itself when the hotel defines the inputs once. Room revenue should say whether taxes and breakfast packaged into the rate are included. Rooms available should say whether out-of-order rooms are removed. Complimentary rooms should be treated the same way every month. A change in the rule is not a change in performance.
House use, day-use rooms, and no-shows are common sources of quiet inconsistency. The accounting treatment matters less than writing it down and applying it the next month. A performance review that starts by restating the definition will argue about the business instead of the spreadsheet.
What RevPAR does not decide
RevPAR does not include food and beverage, banquets, or spa. A resort can have a modest RevPAR and a strong total business, or the reverse. It also says nothing about cost. Two hotels with the same RevPAR can have very different wage and commission structures, especially if one sells mostly through intermediaries.
It is a poor way to rank unrelated hotels. A 40-room heritage property and a 200-room airport hotel are not the same product. Use RevPAR to compare a hotel with its own recent periods, or with a carefully chosen competitive set whose rates and room counts you actually understand. This website does not provide that set.
How owners can use it on Monday morning
Read three numbers together for the same dates: occupancy, ADR, and RevPAR. Then ask which moved. If occupancy rose and RevPAR fell, look at the discount and the channel. If ADR rose and RevPAR fell, look at empty rooms. If all three rose, check that the definition did not change and that the gain is not a one-off group that will not return.
Stayvika’s performance analytics work is a review of figures the hotel already has, not a live dashboard. The relationship can be shown with invented arithmetic: 68 percent occupancy times an ADR of ₹5,800 is ₹3,944. Those values are not a client result and not a target.
Questions hotel owners ask
What is RevPAR?
RevPAR means revenue per available room. It is room revenue divided by the number of rooms available in the period. It also equals occupancy multiplied by average daily rate, when all three use the same definitions of rooms and revenue.
What is the difference between ADR and RevPAR?
ADR, the average daily rate, is room revenue divided by rooms sold. It ignores empty rooms. RevPAR divides the same room revenue by rooms available, so empty rooms pull it down. A high ADR with low occupancy can produce a weak RevPAR.
Does RevPAR include food and beverage?
No. Standard RevPAR is a rooms measure. Restaurants, banquets, and spa revenue are not part of it. A hotel that wants a fuller picture has to look at those departments separately rather than burying them inside RevPAR.
Related offerings
- Performance Analytics — consulting area
- Revenue & Occupancy Analysis — consulting area
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