RevPAR divides room revenue by the available room inventory for the period. CoStar’s STR glossary defines it using room revenue and rooms available. Unlike an average based only on rooms sold, its denominator includes unsold availability. For a period covering several nights, use room nights. Source: CoStar STR Benchmark: Hotel glossary

Use matching periods

In a hypothetical example, £6,000 of room revenue across 100 available room nights gives RevPAR of £60. Record both inputs and the date range. This makes it clear that the calculation covers available inventory, rather than only the rooms that produced revenue.

Review costs separately

Use RevPAR alongside ADR and occupancy when discussing hotel performance. Review operating costs separately before drawing a conclusion about profit. This keeps a room revenue measure in its proper role and gives a pricing discussion more context than a single figure.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.