Revenue per Available Night (RevPAN) is an important real estate rental metric. RevPAN is the average revenue that a Short Term Rental (STR) generates per available nights that the unit is available for rent. RevPAN can be calculated by multiplying the Average Daily Rate (ADR) times the STR Occupancy.
RABBU is a free and useful on-ine tool for reviewing the historical performance of STR markets, including in Pagosa Springs.
For example, the historical RevPAN data for Pagosa Springs during US Holidays is approximately as follows:
It will be interesting to refer back to RABBU during the vasrious 2023 holidays to review historical data on “RevPAN = ADR x Occupancy.”
Local Realtors have reported that Median Sales Price (MSP) for homes in Pagosa Springs is down 8% year-over-year.
According to RABBU, it appears that Occupancy Rates for STRs might be down 25% year-over-year?
RABBU historical data also reveals that the Average Daily Rates, like sale price of homes, may be down 8% year-over-year.
It’s hard to predict if an “AirBNBust” will happen in Pagosa Springs during this years’ key holiday-period short term rental season.
According to RABBU, an STR that includes a hot tub will, on average, bring in an annual revenue considerably higher than a unit without a hot tub.
Given a 25% decline in Occupancy, and an 8% decline in ADR, the STR holiday rental season might see a substantial decline in RevPAN.
Perhaps soon would be a good time for savvy STR operators to consider installing hot tubes to improve ADR, Occupancy, and RevPAN.
Hank Lydick took ‘early’ retirement to build a home in Austin, Texas, and a cabin in Pagosa Springs, Colorado.