New KPI using "Adjusted Paid Occupancy %" in place of "Occupancy" to provide a more accurate view (released 9/12/19)
Referred to as Adjusted Revenue Per Available “Room” with hotels. Adjusted RevPAR is calculated by multiplying the Adjusted Paid Occupancy % by the ADR.
A critical KPI for measuring revenue performance, Adjusted RevPAR takes into account both the average rate at which you booked the property (ADR) and the number of nights it was booked less owner nights and holds (Adjusted Paid Occupancy). This provides a better indicator of overall performance when compared to looking at the ADR or the Occupancy alone.
For example, if a property is 80% occupied for paid available nights at a rate of $300 a night the Adjusted RevPAR is $240 (80% Adjusted Paid Occupancy x $300 ADR). This means that you achieved the equivalent of booking all available nights at $240 (or $87,600 for a full year). If the same property is 100% occupied for paid available nights for $230 a night the Adjusted RevPAR is $230 (or $83,950 for a full year).
Compared to ADR or Occupancy as stand-alone metrics, Adjusted RevPAR provides a more complete measure of your company’s success by giving you an overall picture of both rental revenue and occupancy. In a single figure, Adjusted RevPAR helps you understand how well your company has filed its properties both in the off-season when demand is low even though rates are also low, and in the high-season when demand is high and rates are also high.
Be mindful that in vacation rentals a 10-bedroom is likely to have a significantly higher ADR and thus Adjusted RevPAR than a 2-bedroom property. For this reason, be careful to use filters to draw appropriate conclusions when benchmarking Adjusted RevPAR. For example, a comparison of Adjusted RevPAR for 3 bedroom properties in a similar location vs other 3-bedroom properties in the same location may prove more insightful than a benchmarking of total Adjusted RevPAR for a period inclusive of all property types.
*Note the Adjusted Paid Occupancy % KPI used includes Total Available Paid Nights
= Adjusted Paid Occupancy % x ADR (or) Total Unit Revenue / Total Available Paid Nights in a given period