If you are in Senior Living, you may be asking… What the heck is RevPAR?


Next, you may be asking “Why do I care?”


Because RevPAR is a key metric (borrowed from hotel industry) to measure your overall performance and it’s a GREAT tool to crystalize your prioritized tactics.

What goes into RevPAR?

It’s simple.  Take your total revenue and divided by your total rooms that can be occupied.


Then you measure RevPAR monthly and post and share it with your management team.


And then you meet on it and share ideas on how you increase it.


Also, it’s a great idea to break down revenue components in RevPAR into separate measurements as well.


So, Food and Beverage RevPAR can be measured and focused on as an example.


As can occupancy, or salons, etc.

Critical Components to Consider:


Occupancy Ratio

Yes, and you can usually move the needle the quickest by turning rooms/units quicker when empty, adding more cross marketing referrals and creating more move in specials.


The most expensive room in a Senior Living community, is an empty room.


Incremental Alcohol Sales

Increased availability of upsell beverages is another fast way to increase RevPAR.


Not only is alcohol typically a higher margin product, it offers a bump in billings per resident with most plans.  For Food and Beverage Managers, simply increasing alcohol availability and more tightly controlling billing (i.e., no freebees) will have a positive RevPAR impact.

Capturing Revenue

Paid Guest Attendance

Increasing paid quest attendance (and making sure guests are paying) is another sure-fire way to increase RevPAR.


Encouraging guests to invite in friends and adding special events which bring in dining guests is a great place to start.

Happy Accomplished Employees

Comp Plans

Once you’ve created a baseline measurement of RevPAR overall and RevPAR by components, consider using RevPAR as a critical bonus metric for departmental managers and unit managers.


Follow the simple logic of:


Measure, report and reward and your team will deliver RevPAR improvement.

Ready to Talk?