Skip to content

Search

Latest Stories

HotStats: GOPPAR tracking allows hoteliers to drive profitability

GOPPAR is the metric that explains how revenue is converted into profit, the blog said

HotStats: GOPPAR tracking allows hoteliers to drive profitability

MONITORING GOPPAR PERFORMANCE allows hoteliers to make smart decisions about running their business as they consider all revenue streams and cost variables, according to HotStats. The focus should be on maximizing profit rather than just increasing revenue.

GOPPAR is calculated by taking total revenue, subtracting total departmental and undistributed expenses, then dividing by the total number of available rooms, according to a blog post by HotStats. GOPPAR index measurement gives guidance about why a hotel is either outperforming or underperforming its direct competitors, allowing a hotel owner to make critical changes to improve business, it said.


In February, GOPPAR for U.S. hotels was down 33 percent compared to February 2019, whereas  RevPAR was down 26 percent for the month. It provided evidence that costs were eating farther into the P&L in February.

"RevPAR in 2021 for U.S. hotels was up 77.9 percent compared to a year ago, while GOPPAR was up 488 percent. Year 2020 was a difficult year for the hotel industry due to COVID-induced lockdowns. But the overall rise in GOPPAR could be indicative of better revenue mixed with better cost containment," HotStats said.

"In the hotel industry, revenue is a sprint and profit is a marathon. For a runner like Usain Bolt, all that matters is running fast—the revenue. So, when the gun sounds, all he cares about is getting to the finish line as quickly as possible without any regard for things like fatigue. But a marathon runner has to account for many variables—revenue and expense. He or she can’t expend all their energy from the gate because it’s a long race to the finish line," HotStats added. "Unlike Bolt, hotels are a long-distance run, where profit is the ultimate goal. If revenue is the quick win, profit is what keeps a hotel in the winner’s circle for years to come."

According to HotStats, revenue in hotel industry is like gasoline for a car and the output is profit.

Revenue is nice, but profit is better. All revenue is not created equal and this industry is geared off revenue. But profits are what matters. Focus on profits, not revenue,” said Tyler Morse, CEO of MCR Hotels, the fourth largest hotel owner/operator in the U.S., with blue-chip properties including the TWA Hotel at JFK.

Recently, HotStats revealed that GOPPAR of U.S. hotels hit $65.98 in February, its highest point since October last year.

More for you

Park Hyatt luxury hotel celebrating 45th anniversary
Photo credit: Hyatt Hotels Corp.

Park Hyatt hits 45 years

Summary:

  • Hyatt Hotels Corp. marked 45 years of its Park Hyatt brand.
  • It recently launched “Luxury Is Personal,” its first global campaign in more than five years.
  • Its luxury hotel portfolio has grown 146 percent since 2017.

HYATT HOTELS CORP. marked the 45th anniversary of its Park Hyatt brand, launched in 1980 with Park Hyatt Chicago. It also introduced “Luxury Is Personal,” its first global marketing campaign for the brand in more than five years.

Keep ReadingShow less
U.S. government shutdown 2025 news
Photo by Andrew Harnik/Getty Images

Trump, Congress face shutdown deadline

Summary:

  • President Donald Trump will meet Congress as a shutdown looms.
  • Democrats say they are ready to negotiate a bipartisan deal.
  • Thousands of federal jobs and the U.S. travel economy are at risk if a shutdown occurs.

PRESIDENT DONALD TRUMP will meet Congressional leaders on Monday after Senate Democrats rejected a Republican stopgap spending bill to fund the government until Nov. 21. The U.S. Travel Association recently warned a government shutdown could cost the travel economy $1 billion a week.

Keep ReadingShow less
Trump H1B visa fee India
Photo by Andrew Harnik/Getty Images

Trump’s $100K H-1B fee sparks panic in India

Summary:

  • Announcement of $100,000 H-1B visa fee triggers panic among Indian professionals.
  • The fee applies only to new petitions.
  • IT companies are reportedly reviewing staffing and travel.

THE TRUMP ADMINISTRATION’S announcement of a $100,000 fee for new H-1B visa petitions, effective Sept. 21, reportedly triggered panic among Indian H-1B holders. Many rushed to book last-minute flights, resulting in fully booked planes and higher fares.

Keep ReadingShow less
H-2B visa hospitality impact

Study: H-2B visas boost U.S. jobs and wages

Summary:

  • The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
  • It allows hotels and resorts to meet travelers’ needs while supporting the economy.
  • It provides foreign workers for seasonal jobs when domestic workers are unavailable.

THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.

Keep ReadingShow less
AAHOA advocacy focuses on SBA loans, visa reform
Photo credit: AAHOA

AAHOA advocacy focuses on SBA loans, visa reform

Summary:

  • AAHOA’s FNAC focused on SBA loans, visa fees and Brand USA funding.
  • The association hosted a reception for members who donated $1,001 or more to its PAC, which supports advocacy on Capitol Hill and in state capitals.
  • The event featured SBA Administrator Kelly Loeffler of Georgia.

AAHOA’s FALL NATIONAL Advocacy Conference in Washington, D.C., on Sept. 16 to 17 focused on expanding Small Business Administration loan access, repealing the Visa Integrity Fee and restoring Brand USA funding. The biannual conferences bring hotel owners together each spring and fall to meet lawmakers and advance their priorities in federal policymaking.

Keep ReadingShow less