All terms

TRevPAR (total revenue per available room)

TRevPAR, total revenue per available room, is all of a hotel’s revenue (rooms, food and drink, spa, events, parking and other spend) divided by the number of rooms available.

How to calculate TRevPAR

TRevPAR = total revenue ÷ rooms available, for the same period and the same room count used for RevPAR. An illustrative month: a 40-room hotel has 1,240 rooms available (40 × 31 nights). With €248,000 of room revenue and €124,000 from its restaurant, spa and events, its RevPAR is €200 and its TRevPAR €300.

What it is for, and what it is not

It shows what a stay is worth beyond the bed, which matters most to a hotel with a restaurant, a spa or event space. It is a revenue figure, not a profit one: an outlet with high sales and high costs raises TRevPAR without helping the owner.

Agree which revenue lines are included before you compare two hotels, or two years of the same one.

Sources

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