TRevPAR (TRevPAR)
In hotel revenue management, TRevPAR (total revenue per available room) is all revenue from every department divided by the number of rooms available, whether or not they sold.
It is RevPAR with the restaurant, the bar, the car park and the spa added back in, and whether it is worth tracking depends almost entirely on what kind of property you run.
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What is TRevPAR?
Total revenue divided by rooms available. Total means everything the property earned: rooms, food and beverage, parking, spa treatments, activities, resort fees, meeting space, laundry, anything.
The comparison with RevPAR is the point of the metric. RevPAR counts room revenue only, which means it systematically undervalues a property where guests spend meaningfully on site and describes a bed-and-breakfast almost perfectly.
The gap between the two numbers is a description of your business model. A motel with a vending machine will show TRevPAR a few percent above RevPAR. A resort with three restaurants, a spa and paid activities might show TRevPAR at double its RevPAR, which tells you that half the business has nothing to do with the room rate.
That gap also changes what a guest is worth. If every guest spends $40 beyond the room, filling an extra room is worth $40 more than RevPAR suggests, and the arithmetic on whether to discount a soft date shifts accordingly.
The denominator is the same as RevPAR's: rooms available. That is what makes the two directly comparable and what keeps the metric anchored to the size of the building rather than to guest count.
Resources: RevPAR · GOPPAR · Resorts
How TRevPAR works in practice
Calculate both numbers and read the difference.
Worked example. A 46-room inn with a small restaurant takes $178,000 of room revenue and $61,000 of food and beverage across a 30-day month. Rooms available are 1,380. RevPAR is $129 and TRevPAR is $173. Food and beverage contributes 34 percent of what each available room earns, which means a decision made purely on room rate is being made on two thirds of the picture.
That is the practical use. A property with that profile can justify accepting a lower room rate to fill a date, because the incremental guest brings restaurant spend with them. A property where TRevPAR and RevPAR are within a few percent cannot, and should stop telling itself that heads in beds pay for themselves.
The second use is trend. TRevPAR rising faster than RevPAR means non-room revenue is growing, which is usually deliberate and worth knowing whether it was. TRevPAR falling while RevPAR holds means guests are spending less on site, which can be an early sign of a segment shift before it appears anywhere else.
Where it gets misused is as a headline. TRevPAR is a bigger number than RevPAR, which makes it attractive to quote and unhelpful to benchmark, since almost nobody's departmental mix matches anybody else's.
Resources: ADR · Occupancy rate
Why TRevPAR matters for independent hotels
For most of them, it does not, and that is worth saying plainly.
A bed-and-breakfast, a motel, a small inn without a restaurant or with breakfast included in the rate has TRevPAR within a few percent of RevPAR. Tracking both is arithmetic without a decision attached, and the effort is better spent on booking pace.
Where it earns its place is a property with genuine ancillary revenue. A resort, a hotel with a public restaurant or bar, a property charging for parking, activities or treatments. There, TRevPAR is the number that describes the actual business and RevPAR describes a third of it.
There is a middle case worth flagging: properties that could have ancillary revenue and do not. Calculating TRevPAR and finding it identical to RevPAR is itself a finding, and for some independents that gap is a bigger opportunity than any rate change.
Resources: Revenue management for independent hotels
How to use TRevPAR at your property
- Calculate it once to see whether you need it. If it sits within five percent of RevPAR, stop here and track RevPAR.
- Keep the same denominator as RevPAR. Rooms available, so the two are directly comparable.
- Split it by department. The total is less useful than knowing which department is moving.
- Read the ratio, not just the level. TRevPAR divided by RevPAR describes your business model in one number, and a change in it matters more than a change in either.
- Use it for displacement decisions. If ancillary spend per guest is real, it belongs in the maths on whether to take a lower-rated booking.
- Do not benchmark it externally. Departmental mixes vary too much for comparison across properties to mean anything.
What TRevPAR will not tell you
It has no view of cost, and this matters more for TRevPAR than for RevPAR. Food and beverage carries a far lower margin than rooms, so a property growing TRevPAR through restaurant covers can be adding revenue and very little profit. GOPPAR is the metric that closes that gap.
It cannot be benchmarked meaningfully. Two properties with identical TRevPAR can have completely different businesses underneath, and there is no equivalent of RGI that would make the comparison honest.
And it can mask a rooms problem. A property with a strong restaurant can post healthy TRevPAR while its rooms business quietly deteriorates, which is precisely the situation where you needed to know sooner.
How ampliphi approaches total revenue
Ampliphi prices rooms. The everyday rate suggestion is demand-based, built on booking pace and occupancy, covering the base rate and the differential between room types. It does not price restaurant covers, spa treatments or car parking, and it does not model ancillary spend per guest.
For the properties ampliphi is built for, mostly independent hotels, motels, inns and small groups, rooms are the dominant and most controllable revenue line, and TRevPAR sits close to RevPAR. That is the deliberate scope.
If your property earns a large share of its revenue outside the room, the rate suggestions remain useful for the rooms business and you should expect to hold the ancillary side yourself. You approve every rate before it publishes.
Key takeaways: TRevPAR
- Total revenue from every department divided by rooms available. RevPAR with everything else added.
- The gap between TRevPAR and RevPAR describes your business model.
- For most small independents the two are nearly identical, and RevPAR is enough.
- It earns its place at resorts and properties with real food, beverage or activity revenue.
- It ignores cost, and ancillary revenue carries much lower margins than rooms.
- Do not benchmark it against other properties. Departmental mixes are not comparable.
Frequently asked questions about TRevPAR
Should a small hotel track TRevPAR or RevPAR?
Calculate TRevPAR once. If it lands within about five percent of your RevPAR, track RevPAR and move on.
Most bed-and-breakfasts, motels and small inns fall in that band, particularly where breakfast is included in the rate rather than sold separately. Tracking two numbers that move together adds reporting without adding a decision.
If the gap is 20 percent or more, TRevPAR is describing something RevPAR is missing and belongs in your monthly review. The decision it changes is displacement: whether an extra guest is worth more to you than their room rate alone suggests.
What counts as revenue in TRevPAR?
Everything the property earns: rooms, food and beverage, parking, spa, activities, resort fees, meeting and event space, retail, laundry. If it appears on the property's revenue line, it counts.
The convention most people apply is net of tax, consistent with how ADR and RevPAR are calculated. Be consistent about it, because mixing gross and net between periods produces a change that looks like performance.
The judgement call is commissions and partner splits. If a spa is operated by a third party and you take a share, count your share rather than the gross treatment value. Write down whichever convention you choose, because in a year nobody will remember.
How is TRevPAR different from GOPPAR?
TRevPAR is revenue per available room. GOPPAR is gross operating profit per available room, so it subtracts the cost of producing that revenue.
The distinction matters most for exactly the properties TRevPAR suits. Food and beverage typically runs at far lower margin than rooms, so a resort can grow TRevPAR substantially while GOPPAR barely moves. TRevPAR says the business got bigger. GOPPAR says whether it got better.
For an owner, GOPPAR is the closer number. TRevPAR is easier to calculate, which is why it appears more often.
Can I use TRevPAR to decide whether to discount a room?
Yes, and it is the metric's best use.
If your guests reliably spend beyond the room, the value of filling it is the room rate plus that spend. A $120 room at a property where guests average $45 on food and beverage is a $165 decision, and a discount that looks marginal on room rate alone can be clearly worth taking.
Two cautions. Use incremental ancillary spend, not the average across all guests, since a discounted segment may spend differently from a full-rate one. And use margin rather than revenue, because $45 of restaurant spend at 30 percent margin contributes $13.50, not $45. Getting that wrong is how properties talk themselves into discounts that fill the hotel and lose money.
Is there a competitive index for TRevPAR?
Not in any standard or reliable form, and the reason is structural rather than an oversight.
The competitive indices work because occupancy, ADR and RevPAR are defined consistently enough across properties to aggregate. Total revenue is not. One property's TRevPAR includes a conference centre, another's includes a public restaurant serving mostly non-residents, a third's is essentially rooms with a vending machine. Averaging those produces a number about nothing.
Benchmark TRevPAR against your own history and your own budget. For competitive comparison, use RGI on the rooms business, where the comparison is valid.
Related terms
RevPAR
Room revenue divided by rooms available. TRevPAR's rooms-only counterpart, and the correct headline metric for any property without meaningful ancillary revenue.
GOPPAR
Gross operating profit per available room. The same shape with cost subtracted, and the more honest measure at any property where low-margin departments are growing.
Occupancy rate
The percentage of available rooms sold. At a property with real ancillary spend, each occupancy point is worth more than the room rate implies, which is the argument TRevPAR quantifies.
ADR
The average price achieved per room sold. Rooms-only by convention, which is why a package rate needs a room component allocated before it can be counted honestly.
Direct booking
A reservation made without an OTA. Direct guests are often worth more on a TRevPAR basis as well as a commission basis, since the relationship tends to produce more on-property spend.