Revenue Management
ProfitPAR™ — Profit Per Available Room
The next-generation master metric — the profit each available room actually keeps, after every leak.
Academic definition
ProfitPAR™ (Profit Per Available Room) is a profit-based performance metric for hotels that measures retained room profit per unit of available room inventory. It is defined as net room revenue — gross room revenue after discounts and allowances — less six attributable cost categories (channel commission; discounting and rate erosion; acquisition and marketing; cost per occupied room; cancellation and no-show loss; and operational fixed inefficiency), divided by available room-nights (total rooms × nights in the period, sold and unsold). Where RevPAR measures revenue per available room and GOPPAR measures whole-property operating profit per available room at period close, ProfitPAR™ isolates the profit retained by the rooms business and is designed to be computable in real time, at the point of each pricing and channel decision. ProfitPAR™ is a proprietary metric and a trademark of Sibasish Misra; trademark applications are pending under Classes 35, 41, and 42.
Six Profit Leaks = Channel Commission · Discounting / Rate Erosion · Acquisition & Marketing · Cost per Occupied Room · Cancellation / No-Show · Operational Fixed Inefficiency. Available Room-Nights = total rooms × nights (sold and unsold).
Worked example
A 50-room hotel nets ₹30,15,000 retained room profit over 1,500 available room-nights after the six leaks. ProfitPAR™ = ₹30,15,000 ÷ 1,500 = ₹2,010. A twin hotel at identical RevPAR but only 25% direct keeps just ₹1,095 — nearly half.
The ProfitPAR™ lens
ProfitPAR™ exists because every metric before it measured the money that came in, not the money that stayed. RevPAR rewards filling the room; ProfitPAR™ rewards owning it. By dividing by available room-nights it refuses to flatter — every empty room still counts. By subtracting exactly six leaks it is tight enough to defend and simple enough to act on. And because it resolves to one number, it is the first hotel metric an autonomous AI fleet can optimise continuously — every agent, every decision, scored against the same target: profit.
It is the only hotel metric that measures what reaches the owner's account.
Read the full thesis · See the practice
Measure what each room actually keeps.
ProfitPAR is offered as a private revenue practice, by invitation. Tell us about your hotel to begin.
Request an InvitationWorked examples use illustrative figures in Indian Rupee (₹) with lakh/crore conventions. They are composite and representative, not drawn from any single property. ProfitPAR™ is a trademark of Sibasish Misra.