Revenue Per Occupied Room (RevPOR) differs from RevPAR because it accounts for all revenue a hotel earns when a room is occupied. It accounts for optional services guests can purchase at the hotel, as well as any additional sales made during a stay. RevPOR can be measured daily, weekly, monthly, or annually. The choice that a hotel makes largely depends on the types of insights that that hotel is seeking.

What is Revenue Per Occupied Room (RevPOR) For?

RevPOR is used to determine how much profit a hotel earns when a customer enters the hotel. It gives hotel revenue managers a very useful metric for evaluating a hotel’s overall performance when guests actually stay at a property. Because of this, RevPOR can be a more useful metric for hotel revenue management than a KPI like Occupancy Rate.

Benefits of Revenue Per Occupied Room (RevPOR)

RevPOR is an especially useful KPI for evaluating hotel performance during seasonal periods of low demand. While seasonal trends can drive down other KPIs, RevPOR prioritizes an evaluation of how much an average guest spends on hotel products and services. This is a departure from many other KPIs (like RevPAR) that look at the overall number of guests.

Limitations of Revenue Per Occupied Room (RevPOR)

While RevPOR is useful for evaluating how much the average guest spends at a hotel, it can be limited precisely because it does not account for occupancy rates. This means that RevPOR should be used alongside other hotel KPIs when making strategic revenue management decisions. Most revenue managers, for instance, will also tell you that Occupancy Rate is a very key metric for evaluating a hotel’s bottom line, illustrating why RevPOR is limited by not accounting for actual occupancy.

How is Revenue Per Occupied Room (RevPOR) Calculated

RevPOR is calculated by dividing a hotel’s total revenue by the number of rooms actually sold to guests. Total Revenue should account for all revenue from accommodations, breakfast, spa services, bar and mini bar sales, and any additional revenue.

Example of Revenue Per Occupied Room (RevPOR) Calculation

RevPOR = Total Revenue / Total Occupied Rooms
Total Revenue = Room Revenue + Breakfast + Bar + Mini Bar + Spa + Any Additional Revenue
(This calculation is made for annual RevPOR)

Total Revenue = $3,560,000
Total Occupied Rooms = 51,00

RevPOR = $3,560,000 (Total Revenue) / 51,000 (Total Occupied Rooms) = $69.80