What does 'RevPAR' mean in the context of a Crowne Plaza franchise?

According to Crowne Plaza's 2025 Franchise Disclosure Document, RevPAR is an important metric for assessing hotel performance. Specifically, for Crowne Plaza, "RevPAR" means "Revenue Per Available Room." This is one of three key performance indicators that Crowne Plaza uses to evaluate the financial performance of its "Mature Hotels," defined as those open for at least two full years as of December 31, 2024. The other two metrics are average occupancy rate and average daily room rate (ADR).

Understanding RevPAR is crucial for prospective Crowne Plaza franchisees because it provides insight into how effectively a hotel is filling its rooms at an average rate. A higher RevPAR suggests that the hotel is maximizing its revenue potential from available rooms. The FDD includes historic RevPAR data for Mature Hotels, allowing potential franchisees to benchmark their own potential performance against existing hotels. However, the FDD also cautions that a new licensee's financial results will likely differ and that there is no guarantee that a new franchisee will attain similar results.

It is important to note that the RevPAR figures presented in the FDD are averages and are limited to the markets and attributes of the hotels identified. Factors such as competition, location, economic conditions, and the franchisee's management skills can significantly impact actual RevPAR. While Crowne Plaza provides this data, they explicitly state that they do not warrant, represent, promise, predict, or guarantee that a franchisee can or will attain any of the financial results set forth in the Item 19 charts. Therefore, while RevPAR is a useful metric, prospective franchisees should consider it as just one piece of information in their overall assessment of the franchise opportunity and not rely on it to project future performance.