Glossary of Hotel Terms and Phrases

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Term Definition
Revenue per Available Room (RevPAR)

A statistic used in the hotel industry used to measure revenue per available room. RevPAR is the key indicator of performance for hotels and can be broken down into two parts reflecting occupancy and rates:

RevPAR = occupancy (percentage of available rooms occupied) × average room rate per night. 

The figure can be used to compare companies but only if they have broadly similar hotels - i.e. similarly priced in similar locations.

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