Tourism Economics
What Is TRevPAR and Why Do Hotels Track More Than Room Revenue?
TRevPAR expands the view of hotel performance beyond guest-room sales by measuring revenue from across the entire property relative to its available rooms.
Visitor Spending & Economic Impact • Tourism Economics Explained.
The Quick Answer
TRevPAR, or total revenue per available room, measures all hotel revenue relative to the rooms available during a particular period.
Unlike RevPAR, it can include restaurants, bars, parking, spas, meetings and other hotel-operated services in addition to room revenue. However, TRevPAR does not subtract operating expenses and therefore does not measure profit.
How TRevPAR Measures Total Hotel Revenue
TRevPAR stands for total revenue per available room. It measures the revenue generated across an entire hotel relative to the rooms the property had available during a particular reporting period.
Room sales are usually a hotel’s largest revenue source, but they are not always the only one. Full-service hotels and resorts can also earn money from restaurants, bars, parking, spas, room service, meetings, event spaces, activities and other services. TRevPAR combines those revenue streams before dividing the total by available room-nights.
According to STR Benchmark guidance from CoStar, TRevPAR assesses the total income a hotel generates on a per-available-room basis. If a 100-room hotel earns $20,000 from rooms and another $5,000 from dining, parking and other services during one night, its total revenue is $25,000. Dividing that amount by 100 available rooms produces TRevPAR of $250.
TRevPAR is broader than RevPAR because RevPAR normally includes only room revenue. This distinction matters most for hotels with significant non-room spending. A resort with restaurants, a spa and paid activities may produce much more total revenue than a limited-service hotel with similar room revenue.
However, TRevPAR remains a revenue metric. It does not reveal how much the hotel spent on labor, food, utilities, maintenance or other operations to produce that revenue. GOPPAR extends the analysis by subtracting operating expenses. Together, the metrics show how hotel performance moves from room revenue to total revenue and finally to operating profit.
Tourism Economics in Practice
Imagine This…
A 100-room resort earns $18,000 from guest rooms, $4,000 from restaurants, $1,500 from spa services and $1,500 from parking and activities. Its total revenue is $25,000. Dividing that by 100 available rooms produces TRevPAR of $250, while its room-only RevPAR remains $180.
The Formula
How to Calculate TRevPAR
TRevPAR = Total Hotel Revenue ÷ Available Rooms
$25,000 in total revenue ÷ 100 available rooms = $250 TRevPAR
Beyond the Room
What Can TRevPAR Include?
Rooms
Nightly room rates and other recognized room revenue form the largest component for many hotels.
Food and Beverage
Restaurants, bars, room service, catering and minibars can add significant revenue.
Meetings and Events
Ballrooms, conference rooms, weddings and catered events can generate revenue beyond overnight stays.
Services and Amenities
Parking, spas, activities, retail and other hotel-operated services may contribute to the total.
Follow the Connections
The Same RevPAR Can Hide Different Hotels
Two hotels might each report room RevPAR of $180. One is a limited-service property with few additional purchases. The other operates restaurants, event spaces, parking and a spa. Their room performance appears identical, but TRevPAR reveals how differently the two properties generate total revenue.
A Useful Distinction
From Room Revenue to Operating Profit
RevPAR
Room Revenue
Measures guest-room revenue across available rooms.
TRevPAR
Total Revenue
Measures revenue from across the entire property.
GOPPAR
Operating Profit
Subtracts operating expenses before measuring performance per available room.
Essential Points
Key Takeaways
TRevPAR means total revenue per available room.
It can include rooms, dining, parking, spas, meetings and other services.
TRevPAR offers a broader revenue view than room-only RevPAR.
TRevPAR does not subtract operating expenses and therefore does not measure profit.
Frequently Asked Questions
TRevPAR FAQ
What does TRevPAR stand for?
TRevPAR stands for total revenue per available room.
How is TRevPAR calculated?
Divide total hotel revenue by the number of available room-nights during the same reporting period.
What is the difference between TRevPAR and RevPAR?
RevPAR normally measures room revenue per available room. TRevPAR includes total revenue from rooms and other hotel-operated departments.
What is the difference between TRevPAR and GOPPAR?
TRevPAR measures total revenue without subtracting operating expenses. GOPPAR subtracts operating expenses and measures gross operating profit per available room.
Is TRevPAR useful for every hotel?
It can be used by different hotel types, but it is especially revealing for full-service hotels and resorts with meaningful non-room revenue.
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