The Truth Serum of Hotel Performance: Understanding RevPAR S1E8a

Revenue Per Available Room (RevPAR) serves as hospitality's truth serum, revealing not just if you're selling rooms, but how efficiently you're doing it. This essential metric equals your total room revenue divided by the number of available rooms and helps determine if you're using your inventory to its full revenue potential.

• RevPAR alone isn't enough - what matters is how your RevPAR compares to your competitive set
• RevPAR Index (or Revenue Generation Index) shows if you're getting your fair share of market demand
• Index over 100 means you're outperforming your comp set; below 100 means leaving money on the table
• RevPAR Growth Index tracks your performance compared to competitors over time
• Great leaders don't just ask "what did we make" but "how did we perform relative to what we should have made"
• Stop worshiping occupancy - 95% occupancy at a 40% discount rate isn't a victory
• Understand your seasonality when comparing RevPAR across different time periods

You can learn more about RevPAR revenue strategy in the full financial playbook of hospitality at the University of Arkansas Hospitality Management Program. Whether you're just getting started or ready to take the lead, we don't just teach hospitality, we train professionals to read the metrics and own the mission.

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