What is the meaning / definition of GOPPAR in the hospitality industry?
It is one of the most effective ways to look at your hotel´s performance and make adjustments that impact the best interests to achieve the hotel´s goals.
GOPPAR is a KPI that allows hotels to apply the laws of economics to a complete drill down of the process of Revenue Management and make adjustments not only on achieving the top line but aligning it with the bottom line as well. From an ownership perspective, GOPPAR allows you to see what the value of your asset is at any given time. A hotel is really two assets in one: a real estate asset and an operating business.
How do you calculate GOPPAR?
- GOPPAR Formula: GOP (Gross Operating Profit) / Available Rooms
- Gross Operating Profit per available room