According to hotelsmag.com, http://www.hotelsmag.com, 2005 hotel performance data for six popular destinations in the United States was as follows:
San Francisco/ San Mateo, CA
Occupancy Rate: 70.6%
Average cost of a room: $ 122.77
RevPAR: $ 86.67
Chicago, Illinois
Occupancy Rate: 63.7 %
Average cost of a room: $ 107.46
RevPAR: $ 68.47
Los Angeles-Long Beach, CA
Occupancy Rate: 74.3 %
Average cost of a room: $ 101.85
RevPAR: $ 75.65
Atlanta, Georgia
Occupancy Rate: 61.9%
Average cost of a room: $ 74.38
RevPAR: $ 47.85
Boston, Massachusetts
Occupancy Rate: 65%
Average cost of a room: $83.29
RevPAR: $ 110.10
New York, New York
Occupancy Rate: 83.2%
Average cost of a room: $168.03
RevPAR: $ 211.76
What is RevPAR?
Revenue per available room is the ratio of room rates and occupancy that is used to measure financial performance in the hospitality industry.
Example:
A bed and breakfast with 7 bedrooms with an average room rate of $75 and an average occupancy rate of 40% earns a total of $6300 per month.
$6300 (gross revenue for the month) divided by 210 (number of rooms that could have been rented out for the month) = $30.00