The host problem
RevPAR measures accommodation revenue per available night. It does not subtract the cost of producing that revenue. Two listings with identical RevPAR can have very different economics if one generates eight turnovers per month and the other generates three.
Turnover-adjusted revenue captures what RevPAR misses. It applies the real cost of each cleaning cycle to the occupied-night count, producing a net figure that reflects what you actually keep after the turnover machine runs.
The number, concept, or decision
The turnover drag equation
Every booking triggers a turnover. That turnover has a cost: cleaning labor, supplies, restocking, and coordination. The STR Signals canonical proxy is $174 per booking.
Turnover Drag per Occupied Night distributes that per-booking cost across all the nights that booking produced.
Formula: Turnover Drag per Occupied Night = (Live Bookings × TCP) ÷ Live Booked Nights
When ALOS is short — say, 1.5 nights per booking — each occupied night absorbs a large share of one turnover’s cost. When ALOS is longer — say, 5 nights per booking — each occupied night absorbs a smaller share.
Net RevPAR subtracts that drag from RevPAR.
Formula: Net RevPAR = RevPAR minus Turnover Drag per Occupied Night
What this helps you decide
Net RevPAR tells you whether your current minimum-stay structure is protecting or undermining your actual economics. A RevPAR increase produced by more short bookings may produce a flat or declining Net RevPAR if the additional turnover cost absorbs the gain.
This metric belongs in any comparison of:
- One-night versus two-night minimum stays
- Three-night versus five-night minimum stays in high-demand windows
- Short midweek bookings versus holding for longer weekend stays
Example
Two hosts each run 30 available nights with $3,600 in accommodation revenue. RevPAR for both is $120.
Host A has 12 bookings averaging 2 nights (ALOS = 2). Host B has 4 bookings averaging 7.5 nights (ALOS = 7.5).
Using TCP of $174:
Host A: Turnover Drag = (12 × $174) ÷ 24 = $87. Net RevPAR = $120 minus $87 = $33. Host B: Turnover Drag = (4 × $174) ÷ 30 = $23.20. Net RevPAR = $120 minus $23.20 = $96.80.
Same RevPAR. Net RevPAR differs by $63.80 per available night. Over a 30-night month, that gap is $1,914 in effective economic difference — from booking-shape decisions alone, without any change in rate.
What most hosts get wrong
Most hosts calculate RevPAR without turnover context and use it to evaluate booking-shape decisions. A month with twelve two-night stays may look identical to a month with four seven-night stays on a RevPAR basis. Net RevPAR shows the actual difference.
The second mistake is using cleaning-fee revenue to benchmark turnover cost. Cleaning fees reimburse the cleaner. They do not cover supplies, restocking, coordination, or your time. TCP should reflect the full cost of one turnover cycle, not just the cleaner invoice.
What to do this week
- Pull last month’s booking count, booked nights, accommodation revenue, and available nights.
- Calculate RevPAR: Accommodation Revenue ÷ Available Nights.
- Calculate Turnover Drag: (Bookings × $174) ÷ Booked Nights.
- Calculate Net RevPAR: RevPAR minus Turnover Drag.
- Run the same calculation with half the number of bookings (longer stays) and see how Net RevPAR changes.
Where this fits in the STR Signals framework
Turnover-adjusted revenue sits between RevPAR and the minimum-stay decision. Once you know your Net RevPAR, the question becomes: what booking-shape change would improve it? The answer may be a higher minimum, a reshaped Thursday price, or a tighter window on short-stay availability.