RevPAR vs. GOPPAR: What Hotel Leaders Should Measure
RevPAR measures room revenue performance. GOPPAR measures how much Gross Operating Profit the hotel generates relative to its available rooms.
Authoritative guidance on connecting hotel demand, operational decisions and sustainable operating profit.
RevPAR measures room revenue performance. GOPPAR measures how much Gross Operating Profit the hotel generates relative to its available rooms.
More hotel revenue does not automatically create more profit because every guest, room, meal and event also creates operational demand.
A hotel converts revenue into profit by aligning the operational resources required to run the hotel with the demand and revenue it expects to generate.
Revenue Management optimizes demand and revenue opportunity. Profit Conversion Management optimizes how effectively that revenue is converted into operating profit.
Profit Conversion Management connects expected demand with the operational decisions that convert hotel revenue into sustainable GOP and EBITDA.
See where your profit is leaking — and what closing the gap is worth for your portfolio.