RevPAR vs ADR

RevPAR vs ADR is the comparison between two core hotel performance metrics that answer different questions. RevPAR, revenue per available room, spreads room revenue across every room including empty ones, so it reflects both rate and how full the property is. ADR, average daily rate, divides room revenue only by rooms actually sold, so it measures pricing strength on the rooms that sold and ignores empty inventory.

The link between them is simple: RevPAR equals ADR multiplied by occupancy rate. That relationship is why the two are read together rather than alone. A property can post a strong ADR while RevPAR stays weak if occupancy is low, or hold occupancy high at a discounted ADR. Channel mix shifts both numbers, since demand from direct and affiliate channels can fill rooms through a travel affiliate program without forcing the rate down.

Operators use ADR to judge pricing and RevPAR to judge overall room performance, then layer in profit-based and total-revenue views such as GOPPAR and TRevPAR. Choosing which to optimise depends on the goal: raising rate, raising occupancy, or balancing both for the strongest RevPAR.