What is the definition of PROFPAR in the hospitality industry?
PROFPAR stands for: Profit Per Available Room
PROFPAR is a KPI calculation of profit earnings for each room available in the hotel. PROFPAR is based on operating profit, which accounts for movements in both revenues and expenses.
In comparison and not having delved too deeply into the RevPAR vs. ProfPAR issue, the data suggest that ProfPAR will uncover economic phenomena that RevPAR will not.
How do you calculate PROFPAR?
- PROFPAR Formula: Operating Profit per Year / Daily Available Rooms per Year