What is hotel TRevPAR and how do I calculate it?

TRevPAR (Total Revenue Per Available Room) measures every revenue stream a hotel generates per available room, not just room revenue. The formula: TRevPAR = Total Revenue / Total Available Room Nights Where Total Revenue includes: room revenue, F&B, spa and wellness, parking, transfers, retail, conference and event revenue, and any other ancillary income. Worked example: a 30-room hotel with 70% occupancy in a 30-day month has 30 × 30 × 0.70 = 630 occupied room nights. Total available room nights are 30 × 30 = 900. Room revenue 81,000 EUR (ADR 128.57), F&B 18,000 EUR, spa 4,500 EUR, parking 2,000 EUR, transfers 1,500 EUR. Total revenue 107,000 EUR. TRevPAR = 107,000 / 900 = 118.89 EUR. By contrast, RevPAR = 81,000 / 900 = 90 EUR. TRevPAR is 32% higher because the hotel captures meaningful ancillary revenue. Why TRevPAR matters in 2026: It captures the actual revenue picture. RevPAR ignores 25-50% of total revenue at most full-service or even modern boutique hotels, where ancillary is increasingly large. It rewards ancillary investment. Hotels that deploy guest portals, in-stay ordering, late checkout, parking, and pre-arrival upsell see TRevPAR grow even when RevPAR plateaus. The improvement only shows up in TRevPAR. It is the metric owners and asset managers increasingly use. Property investors look at GOPPAR (Gross Operating Profit Per Available Room) and TRevPAR rather than RevPAR alone, because they capture the operating quality of the hotel, not just the rate strategy. Limitations: TRevPAR includes lower-margin revenue alongside high-margin room revenue. A hotel pushing low-margin F&B might grow TRevPAR but shrink GOPPAR. Track both. TRevPAR for revenue growth, GOPPAR for profitability. In 2026, target TRevPAR/RevPAR ratio for an independent boutique hotel is 1.3-1.6. Below 1.2 indicates under-developed ancillary; above 1.7 indicates either strong ancillary or that the hotel has heavy F&B with thinner margins.