July Is Hospitality’s Halftime—How Are You Tracking?

The Fourth of July is one of the busiest and most profitable weeks of the year for many hoteliers, but it’s also an important marker: the midpoint of your financial year. Now is the time to ask:

• Are we where we thought we’d be?
• Are we growing profitably, or just staying busy?
• What do we need to adjust before Q4 hits?

Whether you’ve had a strong first half or are looking to turn things around, these three metrics will give you the clarity you need to make smarter, more confident decisions.

1. GOPPAR: Profit, Not Just Revenue

It’s easy to focus on top-line numbers like RevPAR, especially during high-occupancy months. But GOPPAR (Gross Operating Profit Per Available Room) is the metric that tells you how efficiently you’re turning revenue into real profit.

Why GOPPAR matters:

• It accounts for operating expenses, not just sales
• It allows better benchmarking between properties and periods
• It highlights where costs may be creeping in unnoticed

Pro Tip: If your RevPAR is up but your GOPPAR isn’t, your costs are likely eating into your gains. Look closely at labor, utilities, and COGS.

2. Labor Cost %: The Expense You Can Control

In most hotels, labor is the single largest operating expense. Tracking labor cost as a percentage of revenue is essential to understanding how efficiently your team is performing and how well you’re scheduling to match demand.

What to ask yourself:

• Are we over-relying on overtime during peak periods?
• Is our labor spend in line with our actual occupancy?
• Are we leveraging automation to reduce manual workload?

The goal isn’t to cut staff, it’s to optimize your labor-to-revenue ratio and reduce burnout during the busiest months.

3. Cash Flow Forecasting: Are You Prepared for What’s Next?

July may be booming, but fall and winter bring different pacing, expenses, and guest behavior. That’s why now is the perfect time to review and update your cash flow forecast.

Look ahead to:

• CapEx investments or renovations
• Seasonal rate fluctuations
• Staff turnover, hiring needs, or end-of-year bonuses
• Vendor contract renewals or renegotiations

Bonus: Automating your cash flow forecast ensures you’re working from the most up-to-date data, so you’re never caught off guard.

The Bottom Line: Don’t Let the Year Run Away From You

Taking 30 minutes this week to review these three metrics can save you months of missed opportunities later.

• GOPPAR tells you if you’re making real profit
• Labor cost % reveals how efficiently you’re operating
• Cash flow forecasting keeps you ready for the unexpected

And if getting these numbers means manually wrangling spreadsheets? That’s a sign it’s time to upgrade your tools.