Understanding a Hotel’s RevPAR Equation

In the hotel industry, a key financial measure of a property's performance is Revenue Per Available Room, or RevPAR. That's the amount of money that each room in a hotel generates on a nightly, weekly, or monthly basis. RevPAR is affected by occupancy and the average daily rate of the hotel's occupied rooms, but for many hoteliers it's much more than this; it is a measurement that controls whether the hotel sales department accepts or rejects a piece of group business.

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