PROFPAR

What is the definition of PROFPAR in the hotel industry?

PROFPAR abbreviates for: Profit Per Available Room

PROFPAR is a KPI computation of revenue earnings for each room accessible in the hotel. PROFPAR is based on operating revenue, which accounts for actions 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 expose financial phenomenon that RevPAR will not.

How do you compute PROFPAR?

PROFPAR rule: Operating revenue per Year / Daily accessible Rooms per Year