Look at some more better performance metrics. Or you can call them modern performance matrices that help us to understand the hotel performance in a much better way and a much concert much overall way strategically. So the first is total revenue per available room. If you remember in the previous slides we have discussed about revenue per available room, which was room revenue divided by available roommates. total revenue per available room is calculated by total revenue of the hotel, whether it comes from room FMB spa or events divided by available rooms. So what this revenue matrices is telling us how well we are able to maximize the overall revenue of the hotel.

Now different market segments. The importance is that the different it represents the Hooters ability to maximize revenue from the capture market and utilize the available space efficiently. Some kudos may have offended They suddenly have a response say some you have a choice to convert into spy you have a choice to convert into a restaurant, you have a choice to convert the same space into a banquet or function or you can leave it as a lobby or you can convert it into the rules. So, how well we are able to maximize the that space particular space in the hotel to maximize the revenue of the hotels for available. So, we are considering the total revenue per available room. So, if let's say you are printing more rooms, then your available room revenue will be lower.

However, if you are converting it into FMV space your per available room can be higher. It depends on the how well we utilize the space we whether we should consider the banquet space whether we should consider the outlet space whether we should convert it as a spa and as well as some market segments spent higher amount in the hotel. So if you are to looking only at the rate spent by occupancy rate or average expense by the particular segment, you may be leaving the business which are contributed by them in other ways maybe spa maybe events, maybe the meeting meeting rooms maybe the outlets. So, there are normally So, in order to understand the overall picture and the better total revenue for the hotel, we can see the total revenue per available room rather than only the occupancy or only the rates. The next revenue address is similar de Graaff operating profit per available room.

So, instead of calculating the GOP percentage we can we normally now adays rely on the operating profit generated per available room now, total revenue per available room also have some some restrictions that it just consider only the revenue but it may be possible that The cost of acquiring the business from some particular segments can be higher compared to the others. So, what at what and the cost of servicing those particular guests can be also different for each segment. So, what is our target finally is the operating profit available per room per available, so, that we can consider both the revenue part and the cost part of servicing and acquiring the customers. So, how we calculate that, we calculate that by GDP per available room is calculated by GDP gross operating profit divided by the available rules is better than repair because it reflects the efficiency and the cost of operations, marketing costs, labor cost management