Which of the following statements concerning Revpar is true?

Question

Quizplus · Accepted Answer

Revpar represents an amalgamation or combination of the room rate and occupancy performance measures. It is calculated by multiplying the average daily room rate by the occupancy rate. Revpar is considered to be a more comprehensive measure of hotel performance than room occupancy alone, as it takes into account both occupancy and rates. However, it does not necessarily represent a gauge of a hotel's financial stability, nor does an increase in Revpar necessarily mean an increase in ROI.

Which of the Following Statements Concerning Revpar Is True