RevPAR is the headline performance metric in hospitality because it blends both levers of room revenue into one number: how full you are (occupancy) and how much you charge (ADR). You can calculate it two ways — total room revenue ÷ available rooms for a period, or ADR × occupancy rate — and they give the same result.
Because it accounts for empty rooms as well as rate, RevPAR is a fairer comparison than ADR or occupancy alone. A property can raise it by filling more rooms, charging more per room, or improving the mix of higher-value bookings.
Why it matters for direct booking
Headline RevPAR ignores distribution cost. A booking that arrives via an OTA — with 15–20% taken in commission — contributes far less to the bottom line than the same booking taken direct, so shifting volume to a commission-free channel lifts your net RevPAR even at the same rate and occupancy.