What does an increase in occupancy generally indicate for RevPAR?

An increase in occupancy generally indicates improved property performance because higher occupancy rates suggest that more rooms are being filled, which typically leads to increased revenue generation. RevPAR, or Revenue per Available Room, is a key performance metric in the hotel and real estate industries, calculated by multiplying the average daily room rate (ADR) by the occupancy rate. When occupancy rises, it often signifies effective management, attractive pricing strategies, or successful marketing efforts, contributing positively to overall property performance.

In this context, while increased room rates and marketing efforts can also play roles in improving occupancy rates, the primary takeaway is that a higher occupancy directly points to better performance of the property in the market. Hence, improvements in occupancy reflect positively on revenue metrics such as RevPAR.