Gross Operating Profit Per Available Room (GOPPAR) is a key performance metric in the hospitality industry that measures the profitability of each available room in a hotel. It is calculated by dividing the gross operating profit (GOP) by the total number of available rooms. GOPPAR provides insights into the hotel's efficiency in generating profit from its room inventory, accounting for both occupancy levels and revenue generated from other revenue streams like food and beverage, spa services, and events.
What is GOPPAR and why is it important in the hospitality industry?
GOPPAR, or Gross Operating Profit Per Available Room, is a key performance metric that measures the profitability of each available room in a hotel. It is important because it provides insights into the hotel's efficiency in generating profit from its room inventory, considering both occupancy levels and revenue from other sources.
How is GOPPAR calculated and what factors does it take into account?
GOPPAR is calculated by dividing the gross operating profit (GOP) by the total number of available rooms.
It takes into account various factors such as room revenue, ancillary revenue, operating expenses, and the number of available rooms to provide a comprehensive assessment of the hotel's financial performance.