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Revenue Mgmt

RevPAR is dead. TRevPAR is the metric.

Why total revenue per available room — including F&B, spa, and ancillaries — predicts profitability better than RevPAR alone.

MH
Markus Hoffmann · Guest Author · Meridian Hotels
May 3, 2026 10 min read
Revenue Mgmt

RevPAR is the metric every hospitality executive grew up with. Room revenue divided by available rooms. Simple, comparable, time-honored. And increasingly, useless.

Across our 18-property portfolio, RevPAR explained only 41% of variance in GOPPAR. The properties with the best RevPAR were not the most profitable. The ones generating the highest non-room revenue per stay were.

What TRevPAR captures

  • Room revenue (the old RevPAR base)
  • F&B spend per occupied room
  • Spa, golf, and activity attach rates
  • Parking, late checkout, and ancillary fees
  • Loyalty redemptions and corporate negotiated upsell

Why it predicts profit better

Room revenue carries a fixed cost structure. F&B and ancillaries have variable cost — and far higher contribution margin per incremental unit. A property that grows TRevPAR by lifting attach rates is growing margin, not just top line.

Stop selling rooms. Start selling stays.

The implication for revenue strategy: shift from rate optimization to package optimization. From channel mix to guest journey design. From RevPAR benchmarks to TRevPAR cohorts.

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