TRevPAR explained: total revenue per available room, and what to count in it

TRevPAR, total revenue per available room, is all operated revenue, rooms plus food and beverage, spa, meetings and other operated departments, divided by the available rooms in the same period. It shows what each room earns for the whole business, not only for the rooms department.

Two hotels report the same RevPAR. One runs a spa, two restaurants and four meeting rooms; the other has a breakfast room and nothing else. RevPAR cannot tell them apart, and an owner comparing the two is comparing two different businesses. After reading this you will know exactly which revenue lines belong in TRevPAR, which stay out, how to split an all-inclusive package price, and how to read the number without mistaking revenue for profit.

What is TRevPAR in one sentence?#

TRevPAR is total operated revenue divided by available rooms: what each room earns for the entire hotel, not only for the rooms department.

RevPAR counts room revenue only, so everything a guest spends outside the room is invisible to it. TRevPAR widens the numerator to the outlets, spa, meetings and other operated departments, and leaves the denominator unchanged. It answers a capacity question: how much does the property earn per unit of capacity it has to fill anyway.

It is a revenue measure that stops at the top line. It says nothing about what the extra revenue cost to produce, which is why it is read next to profit measures, never alone. Properties with heavy non-room spend, such as resorts and city hotels with meeting space, are misread by RevPAR alone.

The gap between TRevPAR and RevPAR is the non-room contribution per available room, and it is often the most useful number on the page. If you are not yet fluent in the base measure, start with RevPAR, ADR and occupancy rate: formulas and common mistakes.

What is the TRevPAR formula?#

TRevPAR equals total operated revenue divided by available room nights for the same period, using exactly the room count and period behind RevPAR.

Available rooms means rooms available each night, summed over the period: room nights, not rooms sold. Dividing by rooms sold instead gives revenue per occupied room, a different measure; mixing the two produces numbers nobody can compare. Keep the same period, the same currency and the same treatment of out-of-order rooms as RevPAR, and write that rule down once.

For example: a 100-room hotel over 30 nights has 3,000 available room nights. Total operated revenue of 600,000 gives a TRevPAR of 200. If room revenue alone is 150,000, RevPAR is 50, and the non-room contribution per available room is 150.

Because RevPAR uses the identical denominator, the two can be subtracted directly: TRevPAR minus RevPAR is non-room operated revenue per available room. The formula is simple; the discipline is in the numerator, which is where hotels quietly disagree with each other.

Which revenue belongs in TRevPAR, and what stays out?#

Include revenue from every department the hotel operates and controls; exclude money the hotel collects for someone else and income that is not an operated department.

In: rooms, food and beverage outlets, spa and wellness, meeting room rental and banqueting, and minor operated departments such as parking, laundry, beach service or golf. Out: value added tax and accommodation tax collected from the guest, amounts held for staff or third parties, and rent received from a leased shop or concession. Also out: interest, gains on the sale of assets and insurance proceeds, which are not trading revenue at all.

Service charges need one written decision: either revenue with an equal payroll cost, or a pass-through collected for staff. The choice matters less than applying it every month. Bundled and package prices need a split rule written before any comparison is made, never after.

Where the lines are defined: USALI is published by Hospitality Financial and Technology Professionals (HFTP), and the American Hotel & Lodging Association describes it as the worldwide authoritative standard for lodging financial reporting (opens in a new tab); its 12th Revised Edition has an adoption date of 1 January 2026 (AHLA, 11 July 2024). For the deeper structure behind these lines, see USALI for hotel owners: reading the departmental profit and loss statement.

How do all-inclusive hotels count TRevPAR?#

In an all-inclusive hotel the guest pays one price for room and board, so that price must be split between departments by a written rule before TRevPAR means anything.

The package is one sale but several departments' revenue. Without a split, either rooms revenue is overstated or the restaurants look as if they earned nothing. Three common approaches: a fixed allocation ratio per contract, a notional menu price for the included meals, or a share based on the hotel's own standalone pricing. Each changes the answer, so pick one and keep it.

Apply the rule identically every month and to every property you compare with, or the series breaks at the first change of method. Extras sold on top of the package, such as upgrades, premium drinks, spa treatments or late checkout, go to their own departments and lift TRevPAR without moving RevPAR.

USALI's 12th Revised Edition adds a section on reporting revenue and expenses for all-inclusive hotels (source: AHLA, 11 July 2024), which is the place to start when your split rule has to survive an audit. The tax treatment of a split package price is a question for your accountant, not for a revenue meeting. For the room-rate side of the same problem, see ADR in all-inclusive hotels: separating room and board revenue.

What does TRevPAR look like across three hotel types?#

The same formula produces three very different numbers, and the size of the gap between RevPAR and TRevPAR tells you what kind of business you are reading.

For example, an all-inclusive resort: 200 rooms, 73,000 available room nights, total operated revenue of 18,250,000 and rooms revenue of 12,775,000, giving a RevPAR of 175 and a TRevPAR of 250. A city hotel with meeting space: 150 rooms, 54,750 available room nights, total operated revenue of 10,950,000 and rooms revenue of 7,665,000, giving 140 and 200. A pension: 20 rooms, 7,300 available room nights, total operated revenue of 584,000 and rooms revenue of 511,000, giving 70 and 80.

Read the gap, not the ranking: 75, 60 and 10 of non-room revenue per available room, each carrying its own cost of delivery. The pension is not failing because its TRevPAR is 80; it has almost no cost base outside the rooms, and its owner should not chase a resort's number. All figures above are invented round numbers in one currency, shown only to demonstrate the arithmetic.

Why is a higher TRevPAR not a higher profit?#

TRevPAR stops at revenue, and a department can add a great deal of revenue while adding little or no profit.

Every extra revenue line brings departmental expenses with it: food and beverage cost, spa therapists, meeting-room setup, extra utilities and cleaning. Two hotels with the same TRevPAR can end the year with very different profit per available room. For example, a spa that adds 20 per available room in revenue and 22 in cost lowers profit while raising TRevPAR, and the top line hides it completely.

Use TRevPAR to see where revenue comes from; use GOPPAR, gross operating profit per available room, to see what is left after the departments have been paid for. There is no safe rule of thumb for how far TRevPAR should sit above RevPAR; the right ratio is the one your own cost structure supports. Read the departmental statement next to the TRevPAR line, department by department, before drawing any conclusion. The full picture is in GOPPAR explained: profit per available room and when RevPAR misleads.

How should a hotel report TRevPAR every month?#

Write the definition down once, apply it every month without exception, and publish it next to the number.

The definition sheet is short and boring, which is exactly why it works: anyone can check a month against it in minutes. It should travel with the report, so a reader in another department or another year gets the same meaning. The number is only comparable across months if the method never moves; a change of method is a new series, not a correction.

What to do next#

Write the one-page definition this week: departments, package split, service charge, out-of-order rooms, currency and period. Then read TRevPAR month against month, next to GOPPAR, and stop comparing your number with a hotel whose numerator you cannot see.