Average Daily Rate says what you charge. Occupancy says how full you are. RevPAR — the hotel industry's favorite blend — says what you actually earn per available room.
The pure rate — revenue divided by occupied rooms. Price discipline in one number.
How full you actually run. Watch it move in the opposite direction to ADR.
The combined KPI. Raising rates to cut occupancy can still win if RevPAR climbs.
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Rates set the top line. Cost controls set the bottom line.