Hotel Revenue Glossary · Benchmarking

RevPAR Growth

The year-over-year percentage change in RevPAR, which captures the combined effect of occupancy and rate changes. Positive RevPAR growth means the hotel is generating more revenue per available room than in the same period of the prior year.

Why it matters: RevPAR growth is one top-line room-revenue lens. Interpret it with market, comp-set, mix, channel cost, profitability, rooms available, source, and like-for-like events; positive or negative growth alone does not prove revenue-management quality.

Worked example: Last year 72% at A$196, so RevPAR A$141.12. This year 69% at A$214, so A$147.66 — growth of 4.6%. Split it. Hold occupancy at 72% and apply the new ADR: A$154.08, or +9.2% from rate alone. Hold ADR at A$196 and apply the new occupancy: A$135.24, or -4.2% from volume. The headline 4.6% is a 9.2% rate win partly eaten by a 4.2% volume loss, and those two facts lead to opposite decisions.

Common mistake: Comparing RevPAR growth against a prior year without checking rooms available. Take 30 rooms out for a bathroom refurbishment and RevPAR rises because the denominator shrank, while total room revenue may have fallen. Reconcile available room nights on both sides of any year-over-year comparison before you report the percentage.

All glossary terms RevPAR (Revenue Per Available Room) RGI (Revenue Generation Index) Budget Variance