👉 How much revenue each available square metre actually generates.
📘 What is RevPAM?
RevPAM (Revenue per Available Metre) is a metric that measures the revenue generated per available square metre within a hotel.
Unlike room-based KPIs, RevPAM focuses on the profitability of physical space, including areas such as:
- Meeting and event rooms
- Food & Beverage outlets
- Spa facilities
- Retail areas
- Co-working spaces
It is particularly relevant for urban, hybrid, or experience-driven hotels where revenue is not limited to accommodation.
📊 RevPAM Formula
RevPAM = Total revenue from the space / Available square metres
Where:
- Total revenue from the space = revenue generated by the specific area (events, restaurant, etc.)
- Available square metres = total operational surface area of that space
✅ Why is RevPAM important?
- Measures economic efficiency of physical space.
- Identifies underperforming or underutilised areas.
- Supports strategic decisions on space redesign or repurposing.
- Essential for hotels with diversified revenue streams.
💡 Practical example of RevPAM
A hotel generates €50,000 from its event space in one month.
The event area totals 500 m².
RevPAM = €50,000 / 500 = €100 per available m²
This allows management to compare the performance of different spaces within the property.
🔄 Disambiguation of RevPAM
- RevPAM vs RevPAR: RevPAR measures revenue per available room; RevPAM measures revenue per available square metre.
- RevPAM vs TRevPAR: TRevPAR analyses total revenue per available room; RevPAM analyses revenue efficiency of physical space, regardless of room count.
In summary: RevPAM tells you how efficiently your space generates revenue — not how many rooms you sell.
