NRevPAR (Net Revenue per Available Room)
NRevPAR (Net Revenue per Available Room) is a profitability-focused performance metric that measures the net room revenue generated per available room after deducting distribution costs such as OTA commissions, transaction fees, and travel agent commissions. Unlike RevPAR, which reflects gross room revenue, NRevPAR reveals how much revenue a property actually retains — making it a more accurate indicator of distribution efficiency and true top-line performance.
Formula
NRevPAR = (Total Room Revenue − Distribution Costs) ÷ Total Available Rooms
Or equivalently:
NRevPAR = Net ADR × Occupancy Rate
Where Net ADR is the average daily rate minus per-booking distribution costs.
Example
A 200-room hotel generates €400,000 in room revenue during a month with 6,000 available room nights. OTA commissions and other distribution costs total €60,000.
NRevPAR = (€400,000 − €60,000) ÷ 6,000 = €56.67
Compare this to the gross RevPAR of €66.67 — the €10 gap highlights the true cost of the hotel's channel mix.
Why it matters
Hotels that rely heavily on OTA distribution may report strong RevPAR figures while retaining significantly less revenue per room than properties with a healthier direct-booking mix. NRevPAR surfaces this difference, helping revenue managers evaluate whether a high-commission OTA channel is genuinely profitable or merely filling rooms at a net loss compared to lower-cost alternatives. It is especially useful when comparing performance across channels, setting commission budgets, and building the business case for direct-booking investment.
Related
- RevPAR — the gross equivalent that does not account for distribution costs
- GOPPAR — goes further by deducting all operating expenses, not just distribution costs
- CPA (Cost per Acquisition) — the per-booking cost metric that feeds into the NRevPAR calculation
- Direct Bookings — the lowest-cost channel, directly improving NRevPAR