What it means
ADR looks only at nights that sold. RevPAR spreads accommodation revenue across all available room-nights in the same period. The name means revenue per available room. For an apartment operation, use apartment-nights consistently and label that basis so readers know what capacity the figure represents.
Why it matters
Suppose a higher price improves ADR while more apartments sit empty. RevPAR helps the team see the combined effect instead of celebrating the price alone. It remains a revenue measure: cleaning, commissions, utilities and payroll still need their own analysis before judging profit.
An example in practice
The February property has 224 available apartment-nights and COP 47,040,000 of accommodation revenue. Dividing gives COP 210,000 per available night. As a cross-check, its ADR of COP 280,000 multiplied by 0.75 occupancy gives the same result.
47,040,000 ÷ 224 = 210,000 COP
The same period and physical capacity. This example has no blocks or complimentary nights.
A mistake to avoid
A payout arriving in February may settle stays from January and already have fees deducted. Dividing that transfer by February capacity mixes different periods and amounts. Use accommodation revenue attributed to the same stay dates as the available nights.
Put it into practice
- Match the revenue dates to the availability dates and use one currency.
- Reconcile revenue divided by capacity with ADR times decimal occupancy.
- Keep distribution and operating costs visible in a separate profit review.
A common question
How do I combine two properties into one figure?
Add their accommodation revenue, add their available nights, then divide the totals. Do not simply average the two RevPAR figures: a property with fewer available nights would receive too much weight. Use the same revenue and availability rules for both.