What is Room Night?
A room night is one room occupied (or available) for one night. It is the basic unit of measurement in the hotel industry.
Room nights are used to normalize comparisons. A 20-room boutique hotel and a 200-room city hotel cannot be compared on total revenue alone, but their performance per room night (RevPAR, ADR) makes a fair comparison possible. Room nights are also the basis for corporate contracts, where companies commit to a certain number of room nights per year.
Example
A guest stays in one room for 3 nights = 3 room nights. A 50-room hotel has 50 room nights available per day, or 1,500 room nights available per month (50 x 30).
Why Room Night matters
Room nights are the currency of the hotel business. Every performance metric — RevPAR, ADR, occupancy — is built on room nights. Understanding your available room nights versus sold room nights is the starting point for all revenue analysis.
Related terms
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