Access Hospitality has published a guide for US hoteliers on average daily rate (ADR) and revenue per available room (RevPAR), two metrics found on every morning report that often move in different directions.
Market context
The article notes that US hotels grew ADR 0.9% in 2025 yet finished the year with RevPAR down 0.3%. By June 2026, ADR was up 6.7% and RevPAR 8.4% year on year, with much of the gain concentrated in a small number of World Cup host markets, a reminder that national averages can hide local reality.
The formulas
- ADR = total room revenue divided by rooms sold
- RevPAR = ADR multiplied by occupancy, or total room revenue divided by total available rooms
The difference is the denominator. In the guide's example, a 100-room hotel selling 80 rooms at $150 has an ADR of $150 and a RevPAR of $120; the $30 gap reflects 20 empty rooms.
When to use each
ADR answers pricing questions: whether a rate campaign held value or bought volume, how pricing compares with the comp set, how rates move seasonally and what each segment is worth. Its blind spot is every unsold room. RevPAR answers whole-property questions: revenue health, whether rate increases filled rooms, market benchmarking and budgeting. Its blind spot is ancillary revenue and costs.
When they diverge
Because RevPAR combines rate and occupancy, pushing one too hard hurts the other. The guide shows a hotel lifting ADR from $150 to $170, a 13% gain, while occupancy falls from 75% to 60%, cutting RevPAR from $112.50 to $102.
Benchmarking with RGI
The Revenue Generation Index divides your RevPAR by your comp set's RevPAR and multiplies by 100. A score of 100 means a fair share of the market; above 100 means outperforming.
Takeaway
ADR, RevPAR and occupancy should be read as a set, with the right balance shifting daily by demand and segment mix.
Originally published by Access Hospitality: Access Hospitality: RevPAR vs ADR and When to Use Each
