← Business Metric: Industry Specific (Consumer, Services & Financial) (all topics)
RevPAR / ARR / occupancy (hotel yield metrics)
What it is
The three linked hotel metrics. Average Room Rate is the price achieved per occupied room; occupancy is rooms sold against rooms available; RevPAR is their product - revenue per available room, occupied or not
Branded RevPAR reached roughly Rs 5,600-5,700 in FY26 on ARR of Rs 8,400-8,600 and occupancy around 66-68%
Impact on industries
- Extreme operating leverage - room costs are largely fixed, so incremental RevPAR converts to EBITDA at very high rates
- Current growth is ARR-led rather than occupancy-led, which is the higher-quality form: occupancy near 68% is close to practical capacity, so pricing power is doing the work
- The same leverage runs in reverse, and the metric is exposed to shocks outside management control - FY26 saw geopolitical disruption hit inbound and MICE demand
- RevPAR conceals mix: renovations, new hotel ramp-ups and portfolio repositioning all move it without indicating underlying trading