Hotel Revenue Glossary · Metrics

RevPAR Yield

Actual RevPAR expressed as a percentage of the maximum possible RevPAR (if every room were sold at rack rate). It combines the effects of rate discounting and unsold rooms into a single efficiency percentage.

Why it matters: RevPAR Yield puts your performance in context of your property's potential. Two hotels with the same RevPAR may have very different yields if one has a much higher rack rate, meaning one is leaving more potential revenue uncaptured.

Worked example: Rack is A$340 on a 120-room house, so maximum RevPAR is A$340. Tuesday you sell 78 rooms at an average A$214: RevPAR is 78 x A$214 / 120 = A$139.10, and RevPAR Yield is 139.10 / 340 = 40.9%. A neighbouring hotel posts the identical A$139.10 RevPAR off a A$260 rack, so its yield is 53.5% and it is running much closer to its own ceiling.

Common mistake: Treating the rack rate as a real ceiling. If nobody has paid rack in three years, RevPAR Yield measures you against a number the market never validated. Either reset rack to your genuine highest achievable rate, or state the ceiling you are actually using. Otherwise the percentage is arithmetic without meaning.

All glossary terms RevPAR (Revenue Per Available Room) Yield Rack Rate