A Simplified Calculation of Your Total Revenue
Total Revenue Per Available Room (TRevPAR) is a hotel performance metric that indicates the total revenue a hotel earns for each available room, including all income sources, not just room sales.
TRevPAR Formula
TRevPAR = Total Revenue ÷ Total Available Rooms
Total Revenue
includes rooms, food and beverage, spa, events, parking, and other services.Available Rooms =
Number of rooms × number of days in the periodAs a hotelier, you need TRevPAR to reveal the revenue generated from every single room, identifying and tracking your primary revenue sources.
Every hotelier must be familiar with the specific details of revenue generation for each hotel operation. The total revenue for available rooms is no exception. The valuable insight this metric gives allows hotel managers to measure overall revenue efficiency and track departmental performance.
Hotels aren’t just about rooms—they’re complete ecosystems. TRevPAR helps identify underperforming areas, such as restaurants, bar services, or meeting spaces, enabling you to maximize total guest spend with new strategies.
•Room revenue
•Food and beverage sales
•Spa/gym/amenity income
•Meeting/event space rentals
•Any other ancillary income
•Occupancy and room rates
•Guest spending in outlets
•Events and group bookings
•Seasonality and promotions
With TRevPAR, you can highlight revenue opportunities beyond rooms.
Improves Decision-Making for Renovations and Investments
When planning upgrades or repurposing space, TRevPAR helps determine whether non-room amenities generate enough income to justify the cost.
Support Strategic Pricing and Packaging
Budget and Forecast
Benchmark Against Competitors or Past Performance
Evaluate ROI on Services and Amenities
TRevPAR helps you identify areas that require investment, improvement, or additional guest services.
A superior guest experience is the foundation of hotel success. That's why HotelSmarters’ comprehensive suite of guest experience solutions is designed to level up every stage of the guest journey. With us, you can ensure not only guest satisfaction but also drive repeat bookings and loyalty.