What is RevPAR in hospitality?
RevPAR is one of the main numbers hotels use to measure how well they sell their rooms. This cheat sheet covers how to think about it, the math and what it means for a company booking rooms. The detail is further down.
How to think about it
- Empty rooms count. The denominator is every room available for the period, occupied and unoccupied.
- It's two numbers in one. Occupancy and average daily rate (ADR) are the components of RevPAR, so it moves when either one does.
- Hotel companies report it. Marriott calls RevPAR a meaningful indicator of performance because it measures the period-over-period change in room revenue.
- Buyers feel it too. When occupancy rises and ADR climbs, travel programs face tighter availability and higher costs. When the numbers soften, buyers have more room to negotiate.
The math
RevPAR = room revenue / rooms available. It also equals ADR x occupancy.
A 100-room hotel sells 75 rooms one night at an average of $160. Room revenue is $12,000, so RevPAR is $12,000 / 100.
$120
Illustrative example. ADR here is $160 and occupancy 75%, and $160 x 0.75 gives the same $120.
RevPAR vs. ADR vs. occupancy
| Metric | How it's calculated | What it shows |
|---|---|---|
| RevPAR | Room revenue / rooms available | Room revenue across every room, sold or empty |
| ADR | Room revenue / rooms sold | The average price of a room that sold |
| Occupancy | Rooms sold / rooms available | How much of the hotel's capacity was used |
How it works on Engine
Hotels that partner with Engine get Partner Hub Insights, with production analytics, competitive benchmarking and customer analysis. Insights+ adds configurable competitive sets, competitive benchmarking insights and in-depth customer segmentation.
Questions
How do you calculate RevPAR?
Divide room revenue by the total number of rooms available for the period. Marriott calculates it by dividing property-level room revenue by total rooms available.
What is the difference between RevPAR and ADR?
ADR is room revenue divided by rooms sold, so it measures the average price of a room that sold. RevPAR divides the same revenue by every room available, so empty rooms pull it down.
What is occupancy?
The share of available rooms that sold. Marriott calculates it by dividing total rooms sold by total rooms available for the period.
Who tracks RevPAR?
Hotel companies report it, and STR reports let hotels benchmark occupancy, ADR and RevPAR against others in the same area or category.
Why should a company that books hotels care about RevPAR?
It is a read on the market. When occupancy rises and ADR climbs, travel programs face tighter availability and higher costs.
Sources
- U.S. Securities and Exchange Commission (EDGAR), Marriott International, Inc. Form 10-K for the fiscal year ended December 31, 2025, accessed November 2, 2026.
- Engine, STR Report: How to Get It and How to Read It, accessed November 2, 2026.
- Engine, Hotel abbreviations list: Guide to hospitality terms, accessed November 2, 2026.
- Engine, 30 Hotel Industry Statistics 2026, accessed November 2, 2026.
- Engine, 8 ways to use data analytics in the hospitality industry, accessed November 2, 2026.
- Engine, Turn analytics into property bookings, accessed November 2, 2026.
- Engine, Company Travel Policy Enforcement, accessed November 2, 2026.