It's time to re-evaluate hotel performance metrics

Hoteliers should focus more on the revenue generation and profitability of the entire hotel, through the likes of RevPAM and GOPPAM

Mar 9, 2023

RevPAR and GOPPAR are effective and reliable indicators of a hotel’s performance; however, they may not provide the whole picture of a hotel’s business performance and don’t allow for comparability against other real estate asset classes.

Key takeaways

  • RevPAR does not take into account those hotels that have substantial non-rooms revenue-generating departments such as food and beverage and conference operations;
  • GOPPAM enables hotel owners to compare their hotel’s performance with that of other real estate classes such as offices, residential and retail;
  • Effective and modern revenue managers must expand their focus from just the hotel’s rooms and put greater emphasis on measuring the entire property’s utilization efficiency.

Download the report at HVS

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