What is RevPAR? A Complete Guide for Short-Term Rental Operators
RevPAR (Revenue Per Available Room) is the single most important metric for measuring STR revenue efficiency. Learn the formula, benchmarks, and how to use it to optimize your portfolio.
If you could only track one metric for your short-term rental portfolio, it should be RevPAR. Revenue Per Available Room captures both your pricing power and your demand in a single number — giving you a more complete picture of performance than occupancy rate or ADR alone.
What Is RevPAR?
RevPAR (Revenue Per Available Room) is the total rental revenue generated per available night over a given period. It combines occupancy rate and average daily rate into one unified performance metric used across hospitality to measure revenue efficiency.
RevPAR = ADR × Occupancy Rate
OR
RevPAR = Total Revenue ÷ Total Available Nights
RevPAR Example Calculation
Your property had 30 available nights in October. It was booked for 21 nights at an average nightly rate of $185. RevPAR = $185 × (21/30) = $185 × 0.70 = $129.50. Both formulas give you the same answer.
Why RevPAR Beats Occupancy Rate or ADR Alone
Occupancy rate without ADR context is misleading. An 85% occupancy rate at $90/night produces a RevPAR of $76.50 — far worse than 65% occupancy at $160/night, which yields $104 RevPAR. RevPAR forces you to see both dimensions simultaneously.
What Is a Good RevPAR for an STR?
- Under $60: Underperforming — review pricing and occupancy strategy
- $60–$100: Average — competitive but with significant optimization potential
- $100–$150: Good — solid performance in most markets
- $150–$220: Strong — top-quartile performance
- $220+: Exceptional — premium market or luxury positioning
How to Improve RevPAR
- Dynamic pricing: Capture demand spikes during events and peak seasons
- Listing optimization: Better photos and descriptions improve booking conversion
- Minimum stay flexibility: Filling gaps between longer bookings boosts utilization
- Multi-platform distribution: More channels = more demand = better ability to hold ADR
Does RevPAR account for expenses?
No. RevPAR is a revenue metric only. For a complete profitability picture, you need Net Operating Income (NOI), which deducts platform fees, cleaning, utilities, insurance, and maintenance from gross revenue.
Track RevPAR across your entire STR portfolio in real time — start free with MagicBnB.
About MagicBnB
MagicBnB is the portfolio intelligence platform for short-term rental operators. Connect your Hospitable or Hostfully PMS and bank account through Plaid to track true net profit, ADR, occupancy, and all the metrics that matter — per property, not just in aggregate. Milo, your AI Revenue & Profit Manager, answers questions about your portfolio in plain English. Use the Deal Analyzer to underwrite new acquisitions before you commit. Free plan available — 5 deal analyses included. Start at magicbnb.io.
