REVPAR (Revenue Per Available Room)

Referred to in commercial real estate as RevPar, Revenue Per Available Room is a metric used in hotel underwriting to calculate the amount of revenue each available room generates in a given period.

RevPar is calculated by either 1) dividing the total actual revenue generated by the number of available rooms or by 2) multiplying the hotel’s average daily room rate (ADR) by the hotel’s occupancy rate. The RevPAR differs from the ADR in that it accounts for any unoccupied rooms.

RevPar = Total Actual Revenue ÷ Available Rooms

Or

RevPar = ADR x Occupancy Rate

Related Content:
« Back to Glossary Index
A.CRE
A.CRE
AdventuresinCRE.com (A.CRE) was started by Spencer Burton and Michael Belasco during their first year of graduate real estate studies at Cornell University. The site was initially meant to fill a need for readily available real estate financial modeling tools. Today, it is the web's preeminent real estate financial modeling, careers, and education resource.

You may also like

What’s New – Accelerator Changelog
9 November, 2021

Not yet an Accelerator member? Click here to learn more and to join. January 2022 Added the ‘Ground Lease Valuation Model‘ to the Financial Models Bundle Added a ‘Calculating Gross Returns vs. Net Returns’ section to the Adding GP Fees …