RevPAR (Revenue Per Available Room)

How RevPAR Is Calculated

RevPAR has two equivalent formulas:

• RevPAR = ADR × Occupancy (most common framing)
• RevPAR = Total Room Revenue / Total Available Rooms (over a defined period)

Example: A 200-room hotel with $200 ADR at 70% occupancy produces RevPAR = $200 × 0.70 = $140. Annual room revenue = 200 rooms × 365 nights × $140 RevPAR = ~$10.2M.

RevPAR can be tracked daily, monthly, year-to-date, trailing-twelve-months, or annual. Sophisticated FL hotel underwriting uses multiple time horizons to capture seasonal patterns and trends.

RevPAR vs. ADR vs. Occupancy

• ADR (Average Daily Rate): Average revenue per occupied room — measures pricing power. Higher ADR with stable occupancy increases RevPAR
• Occupancy: Percentage of available rooms sold — measures demand utilization. Higher occupancy with stable ADR increases RevPAR
• RevPAR: Combined metric. Same RevPAR can be achieved through different ADR/occupancy combinations (high ADR + lower occupancy vs lower ADR + high occupancy)
• Sophisticated comparison: Two hotels with identical RevPAR but different ADR/occupancy mix have different operational profiles — high-ADR/low-occupancy may have pricing power but absorbing capacity; low-ADR/high-occupancy may have full demand but limited pricing leverage

Typical Florida RevPAR Benchmarks by Submarket and Chain Scale

• Orlando — Lake Buena Vista (Disney area): Premium RevPAR reflecting theme park proximity; luxury and upscale segments dominate
• Orlando — International Drive: Strong RevPAR across full-service, select-service, and extended-stay segments; convention and theme park demand
• Orlando — Downtown: Convention center proximity drives strong full-service and select-service RevPAR
• Tampa — Westshore / Downtown: Business travel and leisure mix supports strong full-service RevPAR
• Tampa — Beach destinations (St. Pete Beach, Clearwater): Leisure-driven RevPAR with strong seasonal patterns
• Miami — South Beach and Brickell: Among highest U.S. RevPAR; luxury and full-service dominance
• Jacksonville: Mixed business and leisure; moderate RevPAR with limited luxury inventory
• Secondary FL markets: Variable by specific submarket and demand driver
• Chain scale differences: Luxury → upper upscale → upscale → upper midscale → midscale → economy each support distinct RevPAR levels

RevPAR in Hotel Valuation

Hotel valuation typically derives from stabilized RevPAR projection × number of rooms × 365 days = annual room revenue. Combined with other revenue sources (F&B, banquets, other operating income), produces total revenue. After operating expenses, generates hotel-specific NOI. Hotel NOI capitalized at hotel cap rate produces hotel value.

Per-room valuation metrics:

• Value per key: Total purchase price divided by number of guest rooms. Useful for quick comparison; typical FL ranges from $80K (limited-service economy) to $500K+ (luxury)
• RevPAR multiple: Value per key divided by annualized RevPAR. Stabilized FL hotels typically trade at 8-15x RevPAR depending on segment and submarket
• EBITDA multiple: Value divided by stabilized EBITDA — capturing operational profitability rather than just room revenue

STR / CoStar Penetration Indices

• Competitive set (comp set): A defined group of comparable hotels in the same submarket. STR (Smith Travel Research) provides comp set RevPAR benchmarks
• RevPAR Index: Subject hotel RevPAR divided by comp set RevPAR × 100. 100 = market parity; 110 = 10% premium; 90 = 10% discount
• ADR Index and Occupancy Index: Same calculation but for ADR and occupancy individually. Together they decompose RevPAR performance
• Strong RevPAR Index (110+): Indicates above-market performance — pricing power, brand premium, location advantage, or operational excellence
• Weak RevPAR Index (under 95): Indicates below-market performance — opportunity for repositioning, renovation, or operational improvement

Florida-Specific RevPAR Considerations

• Orlando theme park demand: Strongest single demand driver in U.S. hospitality; supports premium RevPAR across all chain scales
• Convention center activity: Orange County Convention Center, Tampa Convention Center, Miami Beach Convention Center drive periodic RevPAR spikes
• Seasonality: Florida hospitality has distinct seasonal patterns — peak winter (Dec-Apr) for South Florida; summer peak for Orlando theme parks; shoulder periods varying by submarket
• Hurricane disruption: Major storm events can compress RevPAR through closure periods or storm-season cancellations
• Insurance escalation: Florida insurance cost increases hit hotels harder than most other CRE asset classes due to operating intensity
• Brightline and Brightline West: Improving FL rail infrastructure may shift demand patterns toward urban hotel destinations

What is RevPAR in hotel real estate?

RevPAR (Revenue Per Available Room) is the foundational performance metric in hotel real estate — calculated as Average Daily Rate (ADR) multiplied by occupancy rate, or equivalently, total room revenue divided by total available rooms. RevPAR captures both pricing power and demand utilization in a single metric, making it the primary measure of hotel operational performance. Orlando — the most visited U.S. city — supports among the strongest RevPAR performance in U.S. hospitality.

How is RevPAR calculated?

Two equivalent formulas: RevPAR = ADR × Occupancy (most common framing); or RevPAR = Total Room Revenue / Total Available Rooms (over a defined period). Example: a 200-room hotel with $200 ADR at 70% occupancy produces RevPAR = $200 × 0.70 = $140. Annual room revenue = 200 rooms × 365 nights × $140 RevPAR = ~$10.2M. RevPAR can be tracked daily, monthly, year-to-date, trailing-twelve-months, or annual; sophisticated underwriting uses multiple time horizons to capture seasonal patterns and trends.

What's the difference between RevPAR, ADR, and occupancy?

ADR (Average Daily Rate) measures average revenue per occupied room — pricing power. Occupancy measures percentage of available rooms sold — demand utilization. RevPAR combines both: same RevPAR can be achieved through different ADR/occupancy combinations (high ADR + lower occupancy vs lower ADR + high occupancy). Two hotels with identical RevPAR but different ADR/occupancy mix have different operational profiles. Sophisticated analysis decomposes RevPAR into its ADR and occupancy components.

What are typical RevPAR levels in Florida hotel markets?

Florida RevPAR varies materially by submarket and chain scale. Strongest Florida RevPAR submarkets: Orlando Lake Buena Vista (Disney area, premium reflecting theme park proximity), Orlando International Drive (convention + theme park), Miami South Beach and Brickell (among highest U.S. RevPAR with luxury dominance), Tampa Westshore (business travel + leisure mix). Beach destinations (St. Pete Beach, Clearwater) show strong RevPAR with seasonal patterns. Chain scale matters: luxury through upper upscale support highest RevPAR; economy and midscale support lower RevPAR with potentially better occupancy.

What is a RevPAR Index?

RevPAR Index is the subject hotel's RevPAR divided by competitive set (comp set) RevPAR × 100. 100 indicates market parity; 110 indicates 10% premium to market; 90 indicates 10% discount to market. STR (Smith Travel Research) provides standardized comp set definitions and RevPAR benchmarks across U.S. hotel markets. ADR Index and Occupancy Index decompose the RevPAR performance. Strong RevPAR Index (110+) indicates pricing power, brand premium, location advantage, or operational excellence; weak Index (under 95) indicates repositioning, renovation, or operational improvement opportunity.

Who can help me underwrite RevPAR on a Florida hotel acquisition?

Michael R. Linton at Linton Global Solutions advises Florida hospitality participants on RevPAR analysis, acquisition underwriting, and operational benchmarking across luxury, full-service, select-service, limited-service, extended-stay, and boutique hotel formats. With 39 years of Florida CRE transaction experience in the Tampa-Orlando I-4 corridor, deep submarket knowledge of Orlando theme park dynamics, Tampa Westshore business travel patterns, and Florida coastal leisure markets, Linton Global Solutions delivers RevPAR analysis that reflects actual Florida market dynamics. Call (312) 612-1031.

Article Summary

RevPAR (Revenue Per Available Room) is the foundational performance metric in hotel real estate — calculated as ADR × Occupancy, or Total Room Revenue / Total Available Rooms. RevPAR captures both pricing power and demand utilization in a single metric. Two equivalent formulas; sophisticated underwriting decomposes into ADR and occupancy components. Orlando — the most visited U.S. city — supports among the strongest RevPAR performance in U.S. hospitality. Strongest FL RevPAR submarkets: Orlando Lake Buena Vista (Disney area), Orlando International Drive, Orlando Downtown, Tampa Westshore, Miami South Beach and Brickell, Florida beach destinations. Chain scale matters: luxury through upper upscale support highest RevPAR. RevPAR Index (subject RevPAR / comp set RevPAR × 100) measures performance vs market — 100 parity, 110+ premium, under 95 underperformance. Hotel valuation derives from stabilized RevPAR projection × rooms × 365 + other revenue, minus operating expenses, capitalized at hotel cap rate. Florida-specific considerations include theme park demand, convention activity, seasonality, hurricane disruption, and FL insurance escalation impact. Michael R. Linton at Linton Global Solutions advises Florida hospitality RevPAR analysis across all hotel formats.

Key Takeaways

• ✓RevPAR = ADR × Occupancy = total room revenue / available rooms.
• ✓Foundational hotel performance metric.
• ✓Captures pricing power (ADR) + demand utilization (occupancy) in one number.
• ✓Strongest FL RevPAR: Orlando LBV (Disney), I-Drive; Miami South Beach.
• ✓RevPAR Index: subject / comp set × 100. 100 = parity; 110+ = premium.
• ✓Orlando = most-visited U.S. city — premium FL hospitality market.
• ✓Hotel value = (RevPAR × rooms × 365 + other) - expenses, ÷ cap.
• ✓FL hurricane + insurance escalation hit hotels harder than other CRE.
• ✓Decompose RevPAR into ADR + occupancy for operational analysis.

About Michael R. Linton

Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.

Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.

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Works Cited

1. Smith Travel Research (STR). "Hotel Performance Data and Benchmarking." STR, https://str.com/. Accessed Jul 20, 2026.
2. American Hotel & Lodging Association. "AHLA Industry Research." AHLA, https://www.ahla.com/. Accessed Jul 20, 2026.
3. Visit Orlando. "Orlando Tourism Statistics." Visit Orlando, https://www.visitorlando.com/. Accessed Jul 20, 2026.
4. CBRE Hotels. "U.S. Hotel Market Trends." CBRE, https://www.cbre.com/. Accessed Jul 20, 2026.
5. Florida Office of Insurance Regulation. "Florida Hotel Insurance Market." FL OIR, https://floir.com/. Accessed Jul 20, 2026.

Disclosure & Compliance

Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.

Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.