In relation to hotel operations, what does REVPAR signify?

REVPAR, or Revenue Per Available Room, is a key performance metric used in the hotel industry to gauge a hotel's ability to fill its available rooms at an average rate. By dividing the total room revenue by the number of available rooms, REVPAR provides insight into how well a hotel is performing relative to its capacity. This measurement not only reflects the revenue generated from room sales but also indicates the effectiveness of the hotel’s pricing strategy and occupancy levels.

The reason this metric is significant is that it allows hotel operators and managers to assess revenue performance over time, comparing different properties or analyzing the impacts of various marketing strategies and economic conditions. Understanding REVPAR can help hotels make informed operational and financial decisions.

The other options do not accurately capture what REVPAR signifies; some refer to other financial metrics or aspects of hotel performance that do not specifically isolate revenue in relation to room capacity.