What is TRevPAR? Total Revenue Per Available Room explained

As a revenue manager, if you focus solely on room income, you risk overlooking valuable contributions from other parts of the property that can significantly boost your bottom line, such as F&B, spa services and paid add-ons.

That’s where Total Revenue Per Available Room comes in. TRevPAR is an important metric that captures how much revenue each room really contributes, not just from room nights but from everything a guest spends.

This powerful, holistic metric goes beyond rooms to capture the full revenue potential of each room night. For hoteliers, TRevPAR offers a more accurate, more complete view of how the business is really performing.

In this blog post, we’ll break down what TRevPAR is, how to calculate it, and how to use it to drive smarter, cross-departmental growth at your hotel.

What is TRevPAR?

Instead of looking only at room revenue like you would with revenue per available room (RevPAR), TRevPAR adds food and beverage, spa services, parking, retail, events and any other income tied to the guest stay or room availability.

Ancillary revenue can be a meaningful slice of the pie and TRevPAR gives a fuller, more actionable picture of performance, answering the question: “If I had one more room to sell, how much total revenue could I reasonably expect from it?”

By rolling all revenue streams into one per-room denominator, you can compare performance across periods, properties or strategies with a lens that reflects the real economic value of each room.

TRevPAR vs RevPAR: What’s the difference?

As discussed in detail in our What is RevPAR? blog post, RevPAR measures how much revenue you earn from rooms alone. It’s calculated by multiplying your average daily rate (ADR) by occupancy rate or by dividing total room revenue by available rooms.

TRevPAR, on the other hand, includes all income generated from guests – rooms plus food and drink, spa, parking, retail and more.

While RevPAR is a useful snapshot of room performance, it doesn’t tell the whole story. If you focus only on room revenue, you risk overlooking opportunities to grow total guest spend across departments.

Imagine two hotels each with a RevPAR of $100.

Hotel A earns nearly all its revenue from rooms, while Hotel B generates additional income from breakfast service, wine tastings and a small spa.

Hotel B’s TRevPAR might be $140 compared to Hotel A’s $102.

On paper, they look equally strong by RevPAR, but TRevPAR reveals that Hotel B is driving far more total value from its rooms.

Understanding both metrics side by side helps you make smarter operational and marketing decisions that reflect your property’s full earning potential.

Why TRevPAR matters for modern hotels

Today’s travelers aren’t just booking a bed; they’re looking for a well-rounded guest experience, and are willing to spend on things like dining, wellness, local tours and personalized services.

For you as a hotelier, that means revenue opportunities extend far beyond room rates.

That’s where TRevPAR comes in.

Unlike RevPAR, which only accounts for room revenue, TRevPAR gives a fuller picture of how each available room contributes to your hotel’s total income. It helps you track how well your entire property – not just front desk sales – is performing, and this is crucial for smart hotel industry revenue management.

Whether it’s upselling breakfast, offering paid late check-outs or running a profitable bar, TRevPAR captures the impact of those efforts.

This makes TRevPAR especially valuable for smaller or independent hotels where every outlet matters. It supports smarter decision-making across departments and it highlights which services are truly adding value.

In such a competitive landscape, a modern revenue strategy must be cross-functional; TRevPAR reflects this shift, helping you move beyond siloed thinking and focus on total profitability, not just heads in beds.

When a former revenue manager with over a decade of experience, and now Commercial Strategist at Lighthouse, Daniel Foreman, was asked about the value of TRevPAR, he explained: "ADR OCC and RevPAR are the standard metrics we all can calculate in our sleep, but these three metrics really only cover the most basic, cookie-cutter hotel application. What if you’re a Director of Revenue Management, and your management company or ownership group acquires a new full service resort with spa, restaurant, and event space, and you’re expected to manage this property? This is why it's beneficial to branch out and start to learn other metrics like TRevPAR, that give you more flexibility."

How to calculate TRevPAR

TRevPAR is calculated using a very simple equation. We allude to it above but let’s spell out the TRevPAR formula:

TRevPAR = total hotel revenue ÷ number of available rooms

Total hotel revenue includes all income generated by the property during a given period. This might include food and beverage sales, spa treatments, parking fees, event space rental, retail purchases and any other guest-facing services.

However, do note that it shouldn’t include unrelated income like interest, insurance recoveries or one-off transactions.

Available rooms refers to the total number of rooms that could be sold during the period (excluding rooms out of service for renovations or maintenance).

To calculate TRevPAR accurately, you’ll need the right data. This data usually comes from your property management system (PMS) and point of sale (POS) systems, but when more than one system is involved the data is rarely consistent or well-organized.

You need business intelligence to automatically collate and consolidate this data into a single source of truth for real-time insights into all revenue streams at your property.

It’s important to ensure all departments report revenue correctly and that data is aggregated reliably, especially if you’re using the metric to benchmark or make strategic decisions.

Accurate TRevPAR calculations depend on strong internal reporting practices, but once you have a reliable business intelligence system in place, it’s a powerful tool for seeing your hotel’s full revenue picture.

Using TRevPAR to improve your revenue strategy

TRevPAR isn’t just a performance metric, it’s a strategic tool.

By showing how much total revenue each room generates, it helps you identify which departments or services are contributing most to your bottom line.

If your spa, restaurant or meeting space is driving strong returns, for example, TRevPAR will reflect that. Likewise, if certain services are underperforming, TRevPAR can prompt a deeper look into why.

Revenue managers can use TRevPAR insights to uncover new opportunities for growth. Here are a few ways to take action:

• Bundle services together (e.g. room + breakfast + parking) to increase overall guest spend

• Promote upsells at booking or check-in, such as late check-outs or room upgrades

• Analyze spend patterns by segment (leisure vs corporate) to tailor offers accordingly

• Align pricing strategy across departments to maximize total revenue per guest

• Monitor ancillary services to test new ideas and scale what works

Tracking TRevPAR over time also supports long-term planning, helping forecast not only room revenue but the full revenue potential of each stay. In short, TRevPAR helps revenue strategy evolve from reactive to proactive.

TRevPAR benchmarks

As is so often the case in such matters, there’s no one-size-fits-all benchmark for TRevPAR, as it varies widely depending on hotel type, location and target market; a luxury resort with multiple outlets will naturally have a much higher TRevPAR than a limited-service urban hotel.

That said, as general guidance we’d suggest that for a full-service hotel, TRevPAR might range from 1.3 to 2 times its RevPAR, while limited-service properties may sit closer to 1.1 to 1.3 times.

Rather than chasing a single number, focus on using TRevPAR as a comparative tool. You can track it across:

• Time periods (e.g. month-on-month or year-on-year)

• Business segments (e.g. group vs leisure vs corporate)

• Sister properties in your portfolio or competitive set

These comparisons can reveal hidden strengths – or missed opportunities.

For instance, if one property consistently drives higher TRevPAR from F&B, you can explore whether service models or promotions could be applied elsewhere to increase TRevPAR there.

Many larger hotel brands use TRevPAR as a cornerstone of cross-departmental planning, and it helps align operations, marketing and revenue management with the shared goal of maximizing guest value.

Some hotels even set departmental KPIs tied to their contribution to TRevPAR, creating accountability across the business.

Ultimately, the most useful benchmark is your own, so track TRevPAR consistently to measure progress and guide smarter decisions over time.

TRevPAR is just the beginning

TRevPAR gives hoteliers a fuller view of financial performance by capturing all revenue streams, not just rooms. But it’s only one part of a broader, more strategic shift in how hotels approach revenue.

To truly maximize profitability, you need to move beyond isolated metrics and embrace total revenue management.

This means breaking down silos between departments and aligning your entire property around shared goals; it’s not just about selling more rooms or meals, it’s about understanding the full value of every guest interaction from booking to check-out.

By using TRevPAR alongside other insights (like guest spend per segment or profit per square meter), you can build a smarter, more cohesive strategy.

For modern hotels, especially independents, total revenue management is the next step toward sustainable, long-term growth.