Calculation
- TRevPAR is total net revenue per available room
- Total Revenue is the net revenue generated by the hotel
- Rooms Available is the number of rooms available for sale in the time period.
TRevPAR, or total revenue per available room, is a performance metric in the hotel industry. TRevPAR is calculated by dividing the total net revenues of a property by the total available rooms. [1]
TRevPAR is the preferred metric for accountants and hotel owners because it effectively determines the overall financial performance of a property, while RevPAR only takes into account revenue from rooms. TRevPAR is useful for hotels where rooms are not necessarily the largest component of the business. Outlets such as banquet halls also provide a source of revenue for these hotels. [2] [3]
A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a refrigerator and other kitchen facilities, upholstered chairs, a flat screen television, and en-suite bathrooms. Small, lower-priced hotels may offer only the most basic guest services and facilities. Larger, higher-priced hotels may provide additional guest facilities such as a swimming pool, business centre, childcare, conference and event facilities, tennis or basketball courts, gymnasium, restaurants, day spa, and social function services. Hotel rooms are usually numbered to allow guests to identify their room. Some boutique, high-end hotels have custom decorated rooms. Some hotels offer meals as part of a room and board arrangement. In Japan, capsule hotels provide a tiny room suitable only for sleeping and shared bathroom facilities.
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RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured. However, if the calculation uses total hotel revenue instead of guestroom revenue it equals TRevPAR. TRevPAR is another closely related performance metric in the hotel industry.
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Adjusted RevPAR, is a performance metric used in the hospitality industry. It is calculated by dividing the variable net revenues of a property by the total available rooms.