What is RevPAR?
RevPAR—short for Revenue per Available Rental—originated in the hotel industry but has become a go-to metric for serious short-term rental (STR) operators. It blends occupancy and pricing into a single number that tells you how efficiently a home is generating revenue each day it’s available.
Unlike ADR (which only counts booked nights) or occupancy rate (which doesn’t account for pricing), RevPAR gives you a complete picture of a listing’s revenue performance.
How it’s calculated
RevPAR = Total booking revenue Ă· number of available nights
Example: If a listing earned $12,000 in a month and was available for 100 nights, its RevPAR is $120.
Why RevPAR matters
RevPAR is the gold standard for evaluating rental performance. It answers the most important question: How much revenue is this property generating per day it's available?
It’s especially helpful when:
- Comparing listings: RevPAR accounts for both pricing and occupancy, so you can fairly compare homes with different rates or availability.
- Spotting underperformance: A property with high occupancy but low RevPAR may need a pricing adjustment. One with high ADR but low RevPAR may need better calendar optimization.
- Benchmarking against the market: Use RevPAR to evaluate how your listings stack up to your comp set or neighborhood averages.
RevPAR vs. other STR metrics
Metric | What it measures | What it misses |
|---|---|---|
ADR | Rate per booked night | Ignores empty nights |
Occupancy Rate | % of nights booked | Ignores price |
RevPAR | Revenue per available night | The most holistic performance view |
RevPAR in SummerOS
In SummerOS, RevPAR is surfaced in multiple places:
- On the Performance tab of each property
- In comp set comparisons and market benchmarks
- As part of revenue projections to show seasonality and pacing
- Within term sheets for acquisition pitches or owner reports
RevPAR isn’t just a nice-to-know. It’s a critical tool for understanding how each listing is performing and how to improve it.