Revenue per Occupied Room (RevPOR) measures the revenue generated per occupied room during a specified period.
Depending on the hotel’s reporting methodology, RevPOR may include room revenue only or a broader range of revenue associated with occupied rooms, such as food and beverage or other guest services. The revenue categories included must be clearly defined.
How It Works
RevPOR is calculated by dividing the revenue included in the metric by the number of occupied rooms during the same period.
Formula:
RevPOR = Defined Revenue ÷ Occupied Rooms
For example, if the metric includes total hotel revenue, the numerator should include the relevant revenue categories rather than room revenue alone.
Practical Example
A hotel records the following figures for one day:
- Room revenue: CAD 18,000
- Other included revenue: CAD 4,000
- Occupied rooms: 100
If the hotel’s RevPOR calculation includes both room revenue and the other revenue shown:
Total Included Revenue = CAD 18,000 + CAD 4,000 = CAD 22,000
RevPOR = CAD 22,000 ÷ 100
RevPOR = CAD 220 per occupied room
This example uses a broader revenue definition. A hotel using room revenue alone would calculate a different result.
How to Interpret It
RevPOR helps hotels evaluate the revenue generated in relation to occupied rooms. When broader revenue categories are included, it can provide insight into how effectively the hotel generates additional revenue from guests who are staying on the property.
However, RevPOR is not a standardized metric with one universal revenue definition. Hotels should document which revenue categories are included and apply the same methodology when comparing performance across dates or properties.
RevPOR should also be distinguished from RevPAR, which uses available room nights rather than occupied rooms as its denominator.
Related Terms
- RevPAR (Revenue per Available Room): Room revenue divided by available room nights.
- TRevPAR (Total Revenue per Available Room): Total hotel revenue divided by available room nights.
- Revenue per Guest: Revenue generated relative to the number of guests, according to the hotel’s chosen methodology.
- Total Revenue: Revenue generated by the hotel’s various revenue-producing activities.
- ADR (Average Daily Rate): Average room revenue per occupied room.