Performance & revenue
TRevPAR
Also written: total revenue per available room
What TRevPAR means
TRevPAR measures a hotel's overall revenue-generating efficiency per inventory unit by dividing total operational net revenues—including room rates, food and beverage, spa, parking, and ancillary fees—by the total available rooms over a given period.
Formula
TRevPAR = Total Operational Revenue / Total Available Rooms
How it is used
Revenue managers use TRevPAR to evaluate holistic commercial performance rather than room-yield alone. It guides decisions on market segmentation, group pricing, and amenity allocation. For example, a group booking paying a lower room rate but committing heavy food and beverage spend may yield a higher TRevPAR than a high-ADR transient guest. Asset managers and operators rely on TRevPAR to assess total property monetization, evaluate underperforming revenue outlets, and determine whether operational expansions or space conversions are financially justified.
Worked example
A 200-room hotel generates $40,000 in rooms revenue, $15,000 in food and beverage, and $5,000 in spa and parking over one night, totaling $60,000 in gross operational revenue. Divided by 200 available rooms, the TRevPAR for that night is $300.
Common mistake
Confusing TRevPAR with RevPAR causes operators to overlook non-room revenue streams, while ignoring operating margins can lead to chasing high TRevPAR that actually erodes net GOPPAR.
Related terms
Work it out
RevPAR Calculator — Work out revenue per available room from occupancy and rate — or from total revenue.
TRevPAR in our reporting
Recent stories where this term does real work.