Gross operating profit per available room

Gross operating profit divided by available rooms. It carries revenue per available room down to the profit line and so captures cost control as well as pricing.

A rooms-only hotel with ₹6,120 of revenue per available room and a 38% gross operating margin earns ₹2,326; for a hotel with restaurants and banqueting, apply the margin to total revenue per available room instead.

Two hotels with identical revenue per available room can differ substantially here, because one runs a leaner cost base or a better mix of food and beverage against rooms.

Owners use it. The market quotes the revenue figure.