Answer
What is RevPAR and how do I improve it for an independent hotel?
RevPAR is room revenue divided by available room nights over the same period. It can also be expressed as ADR multiplied by occupancy when occupancy is expressed as a fraction. It is a room-revenue measure, not a profit measure.
What to demonstrate
Compare the same room inventory and dates before changing rates. Review demand, booking pace, restrictions, cancellations and distribution costs. A higher ADR is not automatically useful if occupancy or contribution deteriorates.
Commercial scope and verification
Keep net revenue and operating contribution alongside RevPAR. Test changes against your own baseline rather than treating an unsourced market range or a promised revenue increase as a target.
Questions and verification
What is RevPAR and how do I improve it for an independent hotel?
RevPAR is room revenue divided by available room nights over the same period. It can also be expressed as ADR multiplied by occupancy when occupancy is expressed as a fraction. It is a room-revenue measure, not a profit measure.
What should we verify before buying?
Compare the same room inventory and dates before changing rates. Review demand, booking pace, restrictions, cancellations and distribution costs. A higher ADR is not automatically useful if occupancy or contribution deteriorates.
How should we compare costs and results?
Keep net revenue and operating contribution alongside RevPAR. Test changes against your own baseline rather than treating an unsourced market range or a promised revenue increase as a target.