ADR, occupancy and RevPAR, in plain terms
- ADR = nightly revenue ÷ nights sold. "When someone books, what do they pay per night?"
- Occupancy = nights sold ÷ nights available. "How much of the calendar did I sell?" (See the occupancy rate calculator.)
- RevPAR = nightly revenue ÷ nights available = ADR × occupancy. "What did each night I offered earn, booked or not?"
These definitions come from the hotel industry, where STR (now part of CoStar) popularised them as benchmarks. For a single vacation rental, "room" simply means a night of your calendar.
Worked example
In June you had 30 nights open, sold 21 and earned $5,460 in nightly revenue. ADR = $5,460 ÷ 21 = $260. Occupancy = 21 ÷ 30 = 70%. RevPAR = $5,460 ÷ 30 = $182, which is also $260 × 70%.
Go one step further: net RevPAR
Hotels don't pay a cleaner per stay the way hosts do. For a rental, subtract platform fees and cleaning costs from revenue before dividing by available nights. Two strategies with equal RevPAR can differ a lot once you count turnovers, which is why longer minimum stays often win in peak season.