RevPAR stands for Revenue Per Available Room. RevPAR is the industry standard for measuring the revenue-generating effectiveness of a hotel property. It is calculated by multiplying the average daily room rate (ADR) by the occupancy rate and so reflects a combination of price and volume.
The occupancy rate of a hotel measures the number of hotel nights sold by the total number of rooms. It is calculated by dividing the total number of rooms sold by the number of rooms available.
ADR or "average daily room rate" is a hotel revenue measurement calculated by dividing the gross room revenue by the number of occupied room nights sold during a specified period. It is the average price the hotel rooms are sold for.
A full service hotel has additional revenue-generating services and amenities such as restaurants, banquet facilities, business centres and swimming pools. These facilities enable the hotel to attract more market segments. Banquet facilities, for example, are required in order to attract convention business. Because of the higher replacement cost for this type of hotel resulting from its more extensive infrastructure, the barriers to entry in this segment of the market are much higher than with limited service hotels.
Holloway Lodging Corporation's common shares and debentures can be purchased through any brokerage or trading institution and trade on the Toronto Stock Exchange (TSX) under the symbols HLC, HLC.DB and HLC.DB.A.