The Analyst's Path

Glossary

Gross operating profit per available room

M5.10

Also called GOPPAR.

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 hotel with ₹6,120 of revenue per available room and a 38% gross operating margin earns ₹2,326.

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.

It is the measure an owner uses. The revenue figure is what the market quotes.