OCC, ARR, and RevPAR: Three Figures Every Hotel Owner Must Understand
These three terms appear in almost every hotel report. Understanding them helps you accurately interpret property performance.
Hotel reports are full of abbreviations. The three most important for property owners are OCC, ARR, and RevPAR. All three are also explained in the RevPro Glossary.
OCC (Occupancy)
The percentage of rooms sold from the rooms available.
OCC = rooms sold ÷ rooms available × 100%
ARR (Average Room Rate)
The average price per room sold. In some reports, this term is called ADR.
ARR = room revenue ÷ rooms sold
RevPAR (Revenue Per Available Room)
Combines occupancy and rate into one figure, providing a more accurate reflection of performance.
RevPAR = room revenue ÷ rooms available, or OCC × ARR
Why RevPAR Matters
High occupancy with rates that are too low can generate the same revenue as moderate occupancy with healthy rates. RevPAR helps identify which is truly more profitable.
Don’t evaluate performance by occupancy alone. Consider all three together.