ANSWERS · REVENUE & DISTRIBUTION

RevPAR vs ADR: which matters more for a hotel?

6 hotel leaders answerIsaac J. Collazo, Théodore Boschmans, Tim Boersma, Rogier Ensel, Rastko Djordjevic and Sophie RichardPublished 7 Nov 2026

On RevPAR vs ADR, RevPAR is the headline: Isaac J. Collazo of STR says it is the first thing people ask about. ADR is total room revenue divided by rooms sold, says Théodore Boschmans, and Tim Boersma shows that the same ADR with more occupancy brings more revenue. Rogier Ensel looks at occupancy first, because a rate means nothing if no one stays. Rastko Djordjevic lifted ADR on renovated suites by more than 40%, yet warns that every market has a ceiling, and Sophie Richard checks whether a result comes from rate or occupancy.

This answer is part of our guide to hotel revenue management.

In their own words

Isaac J. Collazo
Vice President, Analytics, STR (Smith Travel Research)
“RevPAR is the biggest thing. People that's the first thing I get asked about.”
Listen from 12:23Smith Travel Research: Unlocking Hotel Data Power
Théodore Boschmans
Hotel Broker, Christie & Co
“Occupancy rate is how many rooms do you sell and how many are available. And then ADR will be your total room revenue divided by the amount of rooms you sold. And that will give you an idea of how am I performing in comparison to my competitors.”
Listen from 09:00Inside the business of selling hotels
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Tim Boersma
Revenue Manager, Room Price Genie
“Your ADR stay the same, but you have more occupancy, and therefore, you have more revenue.”
Listen from 24:28The Pricing Mindset Shift Holding Hotels Back
Rogier Ensel
Owner / founder (revenue management consultancy), RevGen
“If no one is staying in your hotel, what's the point of a certain rate? ... Occupancy tells you if it's right or wrong, and ADR is then the measurement where you move up or down.”
Listen from 19:27Occupancy first, ADR second: revenue management for independents
Rastko Djordjevic
Managing Director EMEA and global lead, JLL Asset Management, JLL
“They do an excellent job in renovation. ... there's only so much room for ADR growth, and you may overinvest, and you may not get the return you're expecting. ... We have managed to obtain an ADR increase on those suites of more than 40% for keeping the same brand.”
Listen from 09:07Owner, operator, advisor: what a hotel asset manager really does
Sophie Richard
M&L Group
“They only look at certain part of revenue. ... the RGI needs to look good. Whether it comes from occupancy or it comes from rates, makes no difference to them if the RGI is good. It makes a huge difference to me, though ... As the asset manager.”
Listen from 09:17Reposition before rebrand: a Brussels hotel asset case