TRevPAR
Total Revenue Per Available Room - a metric that includes all hotel revenue sources, not just room revenue, per available room.
Definition
TRevPAR (Total Revenue Per Available Room) expands on the traditional RevPAR metric by including all revenue generated by the hotel, not just room revenue. This includes food and beverage, spa services, parking, meeting rooms, and any other ancillary income. TRevPAR provides a more holistic view of a hotel's revenue-generating ability per available room.
Why it matters
Modern hotels generate significant revenue beyond room sales. A property with a strong restaurant, spa, or event business may have a moderate RevPAR but an impressive TRevPAR. By tracking TRevPAR, hotels can better evaluate total performance, identify underperforming revenue centers, and make more informed decisions about where to invest in improvements.
How to calculate
TRevPAR is calculated by dividing total revenue by available rooms:
TRevPAR = Total Hotel Revenue ÷ Available Rooms
Example
If a 100-room hotel generates €15,000 in room revenue, €5,000 in F&B, and €2,000 in other revenue in one day: Total Revenue = €22,000 TRevPAR = €22,000 ÷ 100 = €220 per available room
Best practices
- 1Track TRevPAR alongside RevPAR to understand total revenue contribution
- 2Break down TRevPAR by revenue center to identify growth opportunities
- 3Use TRevPAR when evaluating hotels with significant non-room revenue
- 4Set TRevPAR targets that encourage cross-departmental revenue growth
- 5Monitor TRevPAR trends to assess the impact of new revenue initiatives