Revpar is the key measure in the performance of the core business of hotels-selling rooms. Revenue per available room (revpar) is the key indicator of performance for hotels and can be broken down into two parts reflecting occupancy and rates:

    Revpar = occupancy (percentage of available rooms occupied) × average room rate per night. Trends in revpar are very important. Revpar can be used to compare companies but only if they have broadly similar hotels - i. E. Similarly priced in similar locations. This is less unlikely than it may seem as most hotels companies give regional breakdowns of revpar and this can be compared.