RevPAR — Revenue Per Available Night
RevPAR (Revenue Per Available Night) measures revenue performance by accounting for both nightly rate and occupancy — calculated as ADR multiplied by occupancy rate.
RevPAR is the single most comprehensive performance metric for short-term rental properties because it captures both your pricing power (ADR) and demand (occupancy rate) in one number. A high ADR with low occupancy and a low ADR with high occupancy can produce the same RevPAR — this metric reveals the true revenue efficiency of your property.
Also known as RevPAN (Revenue Per Available Night), RevPAR is widely used in the hotel industry and has become standard in STR analytics platforms. When comparing properties or markets, RevPAR gives a more accurate picture than either ADR or occupancy alone.
Strong STR markets typically have RevPAR of $100–$200+. Premium vacation destinations can achieve $300+ RevPAR during peak seasons. Urban markets tend to have lower RevPAR ($75–$130) with less seasonal variation. Understanding a market's RevPAR benchmark before purchasing helps set realistic revenue expectations.
Formula
RevPAR = ADR × Occupancy RateCalculate It
Quick Calculator
RevPAR = ADR × Occupancy Rate
RevPAR
$115
Worked Example
A property has an ADR of $200 and 65% occupancy. RevPAR = $200 × 0.65 = $130 per available night. Annual revenue ≈ $130 × 365 = $47,450.
Related Terms
Related Calculators
Frequently Asked Questions
What is a good RevPAR for a short-term rental?+
A RevPAR above $100 is generally considered solid for most US markets. Premium vacation markets in high season achieve $200–$400+ RevPAR. Use AirDNA or Rabbu to find market-specific RevPAR benchmarks before underwriting a deal.
How is RevPAR different from ADR?+
ADR only measures revenue on nights that are actually booked; RevPAR measures revenue across all available nights, including vacant ones. RevPAR = ADR × Occupancy Rate. It's a better total performance metric because a property with 100% ADR but only 30% occupancy has terrible RevPAR.
Can I improve my RevPAR?+
Yes — RevPAR improves when ADR increases (dynamic pricing, amenities, better photos) or when occupancy improves (competitive pricing, better reviews, more booking channels). Dynamic pricing tools optimize this balance automatically by adjusting rates based on real-time demand.
How does RevPAR affect NOI?+
Annual revenue ≈ RevPAR × 365. Higher RevPAR directly increases gross revenue, which increases NOI after operating expenses. A $20 RevPAR improvement adds roughly $7,300 in annual gross revenue.
What does RevPAN mean?+
RevPAN and RevPAR are the same metric — Revenue Per Available Night. Some platforms and analysts prefer RevPAN because "available" is already specified (every night is available), while others use the hotel-industry standard abbreviation RevPAR. Both formulas are identical: ADR × Occupancy Rate.