Why RevPAM should be your new favourite metric

Most teams track RevPAR (Revenue per Available Room). It's standard, familiar and comfortable. But RevPAR looks at how much money each room makes, not how much money each square meter makes. And in hospitality, space is your most valuable (and most expensive) asset.

It’s where most hotels and management companies stop. And where we begin.

Have you ever done the math to see if a 50 m² suite or two 25 m² rooms is more efficient? This is where RevPAM (Revenue per Available Square Meter) comes in. And when you look at revenue from a space perspective, the story changes quickly:

• A suite may deliver high RevPAR but low RevPAM.

• A small double room could be the best thing you sell.

• Supplements often don’t scale with room size, creating hidden gaps.

• The data may not support the assumptions your room plan makes.

Why do we measure RevPAM? Because it helps us:

• Find out which room types really create value.

• Know if our room supplements make sense.

• Use data, not guesses, to improve our room mix.

• Identify revenue potential without adding inventory.

• Make better choices about renovations or redesigns.

RevPAM doesn’t replace RevPAR — it elevates it. It shows us how our space actually performs, where revenue is made, and where potential sits untouched. And it turns our room plan from a traditional framework into a strategic engine.