RevPAR, ADR, TRevPAR and GOPPAR: A Hotel Metrics Guide
Running a hotel without understanding its key metrics is like sailing without instruments. RevPAR, ADR, TRevPAR and GOPPAR are the four indicators every revenue manager must master to make profitable decisions. In this guide we explain them one by one, with formulas and examples.
Quick comparison table of the four metrics
| Metric | What it measures | Formula |
| ADR | Average rate per room sold | Room revenue / Rooms sold |
| RevPAR | Revenue per available room | Room revenue / Available rooms |
| TRevPAR | Total revenue per available room | Total revenue / Available rooms |
| GOPPAR | Gross operating profit per available room | Gross operating profit / Available rooms |
ADR: Average Daily Rate
ADR measures the average price at which you sell an occupied room. It does not account for empty rooms.
ADR = Room revenue / Rooms sold
Example: if you earn $9,000 selling 90 rooms, your ADR is $100.
RevPAR: Revenue per Available Room
RevPAR combines price and occupancy, offering a more realistic view of performance.
RevPAR = Room revenue / Available rooms
Example: with $9,000 in revenue and 120 available rooms, RevPAR is $75. It also equals ADR × occupancy ($100 × 75% = $75).
TRevPAR: Total Revenue per Available Room
TRevPAR includes all hotel revenue: rooms, restaurant, spa, parking and extras.
TRevPAR = Total revenue / Available rooms
Example: if you total $13,200 in revenue across 120 available rooms, TRevPAR is $110.
GOPPAR: Gross Operating Profit per Available Room
GOPPAR is the most complete indicator because it measures real profitability after deducting operating costs.
GOPPAR = Gross operating profit / Available rooms
Example: if your gross operating profit is $6,000 and you have 120 available rooms, GOPPAR is $50.
When to use each metric
| Metric | Best use |
| ADR | Evaluate pricing strategy and rate positioning |
| RevPAR | Compare performance across periods or competitors |
| TRevPAR | Hotels with significant ancillary services |
| GOPPAR | Measure real profitability and operational efficiency |
How direct bookings impact each metric
Direct bookings have a positive, measurable effect on all these metrics, especially the profitability ones:
- ADR: by avoiding forced OTA discounts, you can maintain healthier rates.
- RevPAR: improving direct acquisition raises occupancy without cannibalizing the average rate.
- TRevPAR: direct contact lets you upsell extra services before arrival.
- GOPPAR: this is where the biggest impact lies: eliminating 15-25% commissions translates directly into more operating profit per room.
Tools like WeSpeak automate direct booking acquisition over WhatsApp with no per-booking commission, which especially improves GOPPAR by reducing the distribution cost that erodes profitability the most.
Discover the AI assistant for hotels by WeSpeak to increase your direct bookings and cut OTA commissions. See how to get started →
Frequently asked questions
What is the difference between ADR and RevPAR?
ADR measures the average rate of only the rooms sold, while RevPAR spreads revenue across all available rooms, combining price and occupancy into a single, more realistic indicator of performance.
Why is GOPPAR the most important metric for profitability?
Because it is the only one that deducts operating costs, showing real profit per available room. Two hotels with the same RevPAR can have very different GOPPAR depending on their cost and commission structure.
How do direct bookings help improve these metrics?
By eliminating OTA commissions and forced discounts, direct bookings improve GOPPAR directly, allow you to maintain a healthier ADR and enable the upselling that raises TRevPAR. WeSpeak helps capture them over WhatsApp with no per-booking commission.
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