In the hospitality industry, metrics like ADR (Average Daily Rate) and RevPAR (Revenue Per Available Room) are commonly used to evaluate performance. However, while they provide valuable insights, they don’t give the full picture of a hotel’s financial health. To truly understand profitability, two additional KPIs are essential: TRevPAR and GOPPAR.

🔹 What is TRevPAR? (Total Revenue Per Available Room)

TRevPAR measures total revenue generated from all departments—rooms, food & beverage, spa, events, and other services—on a per available room basis. It goes beyond RevPAR, which only reflects room revenue, offering a more complete view of overall revenue performance.

Formula:
TRevPAR = Total Revenue (All Sources) ÷ Total Available Rooms

Example:
A 200-room resort earns:

  • $80,000 from room sales
  • $20,000 from F&B
  • $10,000 from spa services

TRevPAR = (80,000 + 20,000 + 10,000) ÷ 200 = $550

Key Insight:
While RevPAR may show $400 (rooms only), TRevPAR reveals the full $550 in revenue per room, showing the added value of ancillary services. It’s a vital metric for full-service hotels and resorts to identify untapped revenue potential across departments.

🔹 What is GOPPAR? (Gross Operating Profit Per Available Room)

GOPPAR focuses on profitability by measuring how much gross operating profit is earned per available room, after expenses. Unlike RevPAR or TRevPAR, GOPPAR reflects what actually contributes to the hotel’s bottom line.

Formula:
GOPPAR = (Total Revenue – Operating Expenses) ÷ Total Available Rooms

Example:
A 100-room hotel earns $50,000 in total revenue and incurs $30,000 in operating costs.

GOPPAR = (50,000 – 30,000) ÷ 100 = $200

Key Insight:
RevPAR may show $500 in revenue per room, but GOPPAR tells you that only $200 is actual profit. It helps determine whether your high revenue is translating into real financial success.

🔄 Key Differences at a Glance

  • RevPAR = Room revenue focus (Are we selling rooms?)
  • TRevPAR = Total revenue focus (How much are we earning overall?)
  • GOPPAR = Profitability focus (How much do we keep after expenses?)

✅ The Bottom Line

While RevPAR indicates how well your rooms are performing, it’s TRevPAR and GOPPAR that reveal whether your hotel is truly thriving.

Understanding and monitoring all three metrics helps you:

  • Boost revenue across all departments
  • Control costs effectively
  • Make strategic, profit-focused decisions

In today’s competitive market, it’s not just about how much you earn—it’s about how much you keep.