Hotel people throw four acronyms around constantly: ADR, RevPAR, TRevPAR, and GOPPAR. They look similar, and they each answer a slightly different question. This post explains them with one example so you can see how they connect. Our hotel has 40 rooms. Last night it sold 28. Room revenue was $3,360. Total revenue, including the restaurant, spa, and parking, was $4,200. And after paying the costs of running the hotel, gross operating profit came to $1,400. I’ll use those numbers all the way through. You don’t need a finance degree. If you can divide one number by another, you can work all of this out, and once you do, the monthly report from your system stops looking like a wall of letters.
ADR: what you charged
ADR is average daily rate. You take room revenue and divide it by the rooms actually sold. In our hotel, that’s $3,360 divided by 28, which gives $120. It tells you the average price guests paid for a room that night. It’s useful for spotting whether your rates are moving the right way, but it has a blind spot: ADR says nothing about the rooms you didn’t sell. A hotel can push ADR up by raising rates, lose half its bookings, and still show a nice-looking number. That’s why nobody should judge pricing on ADR alone. Look at it next to occupancy, and check which channels the guests came from, since a discount on one OTA can pull the average down without telling you why.
RevPAR: price and occupancy together
RevPAR is revenue per available room. You divide room revenue by all the rooms you have, sold or not. For us that’s $3,360 divided by 40, which is $84. You get the same result by multiplying ADR by occupancy: $120 times 70%. This is why RevPAR is the favourite number in revenue management. It punishes both mistakes at once. Charge too little and ADR drops. Charge too much and occupancy drops. Either way, RevPAR falls. It’s also easy to compare with other hotels in your market, since the number doesn’t depend on how many rooms you have. Its blind spot is the opposite of ADR’s. It only counts room revenue, so it ignores everything else your guests spend and everything it cost you to serve them.
TRevPAR: the whole guest
TRevPAR is total revenue per available room. You use all revenue, not just rooms. In our example, that’s $4,200 divided by 40, or $105. It matters when your hotel earns real money outside the rooms, like a restaurant, banquets, spa or parking. A guest who pays a lower room rate but eats at your restaurant every night might be worth more than one who pays a higher rate and leaves for dinner. To track TRevPAR properly, all revenue has to land in one place, which is why a connected point of sale system and property management system help. If restaurant charges live in a separate tool nobody reconciles, your TRevPAR will always be a rough guess and you won’t see which guests are really worth more.
GOPPAR: what’s left after costs
GOPPAR is gross operating profit per available room. You take gross operating profit, which is revenue minus the costs of running the hotel, and divide by available rooms. Our $1,400 divided by 40 gives $35. This is the number owners care about most, because it shows profit, not just sales. It also catches a trap: you can raise RevPAR by filling rooms with low-paying, high-cost bookings, such as heavy commission channels or guests who need a lot of service, and end up with less profit. The downside is that GOPPAR is harder to calculate. It needs accurate cost data from accounting, which not every hotel has day by day, so many calculate it monthly instead.
Which ones to watch, and how
For daily pricing decisions, watch occupancy, ADR, and RevPAR together. For a monthly review, add TRevPAR if you have a restaurant or events business. For the owner conversation, use GOPPAR. Don’t chase one number at the expense of the others. Whatever system you use should show these without exports and spreadsheets, so ask to see them with your own data in a demo. Aiosell puts its PMS, POS, accounting, and revenue management system on the same platform, which is the kind of setup that makes these figures easier to pull, though you should check the exact reports in the 15-day free trial. Write the four numbers down for the last three months, and watch how they move together. That small habit teaches you more about your hotel than most dashboards do.
