GOPPAR is the abbreviation for gross operating profit per available room, a key
performance indicator
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it en ...
for the
hotel industry
A hotel is an establishment that provides paid lodging on a short-term basis. Facilities provided inside a hotel room may range from a modest-quality mattress in a small room to large suites with bigger, higher-quality beds, a dresser, a ref ...
.
It gives greater insight in the actual performance of a hotel than the most commonly used
RevPAR
RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.Mauri, A. G. (2012), ''Hotel ...
as it not only considers
revenue
In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business.
Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...
s generated, but also factors in operational costs related with such revenues.
GOPPAR is the total revenue of the hotel less expenses incurred earning that revenue, divided by the available rooms.
GOPPAR does not take into consideration the revenue mix of the hotel, so while it does not allow an accurate evaluation of the room revenue generated it demonstrates the profitability and value of the property as a whole.
Calculation
:
* ''GOPPAR'' is the gross operating profit per available room
* ''
Gross Operating Profit'' is the net revenue from the hotel after expenses
* ''Rooms Available'' are the rooms available for sale during the time period
See also
*
RevPAR
RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.Mauri, A. G. (2012), ''Hotel ...
*
TRevPAR TRevPAR, or total revenue per available room, is a performance metric in the hotel industry. TRevPAR is calculated by dividing the total net revenues of a property by the total available rooms.
TRevPAR is the preferred metric for accountants and ho ...
References
Business intelligence
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