The 5 Numbers That Haunt Hotel GMs (and 1 That Might Save You) Sleep is for Guests. You Have A Dashboard. S1E10a

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Rob Powell takes us behind the scenes of hotel management to reveal the five critical numbers that determine success or failure in hospitality operations. The metrics that haunt great general managers go beyond guest complaints to the financial and operational indicators that reveal the true health of a property.

• GOP (Gross Operating Profit) reveals if you're running a viable business or just "hosting an expensive party"
• Labor cost percentage requires precise balance - too high bleeds money, too low damages service
• RevPAR Index (RGI) shows how you're performing against competitors, revealing if you're falling behind
• Online ratings vs. in-house survey scores should align - trust the internet when they don't
• Staff turnover rate impacts culture, morale and profitability - a key indicator of leadership quality
• Great GMs focus on trends rather than drowning in data points
• Effective hospitality leadership requires both financial literacy and people skills

The industry needs more number-literate leaders who can balance data with human concerns. Join us at the University of Arkansas Hospitality Management Program to learn how to lead with financial fluency and a human heart.

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Episode Transcript

Speaker 1 (00:02):
This is Housekeeping Didn't Come.
And today we're going behindthe front desk, into the office,
past the coffee machine andstraight into the late-night
brain of a general manager.
I'm Rob Powell, I've been thatguy and I'm telling you here and
now.
It's not just the guestcomplaints that keep you up at 2
am, it's the numbers, not allof them, just the ones that

(00:26):
really matter.
Here are five numbers thathaunt or empower a great
hospitality operator Grossoperating profit GOP.
This is what's left after allyour revenue generating and
service expenses are there.
It tells you if you're runninga business or just hosting an
expensive party.
Second one labor cost as apercentage of revenue.

(00:48):
Too high, you're bleeding moneyToo low and service suffers.
A tight GM knows theirbenchmarks and checks this
weekly, sometimes daily.
Revpar Index or RGI you mightbe doing fine, but how's the
comp set doing If they're doingbetter?
You're falling behind.

(01:09):
Period Online ratings versusin-house survey scores these
should match or closely.
If guests tell you your team isdoing one thing and the
internet is telling another,trust the internet and fix it
fast.
Turnover rate this is the lastone, and I'll tell you what this
is.
In my opinion, one of the mostimportant.

(01:31):
This one is personal.
Staff turnover kills culture,morale, excuse me, kills culture
, morale and profitability.
If it's high, everything elsestarts to wobble.
When I look at hiring GMs orexecutives, I want to look at
their turnover rate.
This tells me the health oftheir staff, which speaks a lot
to the kind of leader they areNow great GMs.

(01:52):
They don't drown in this data.
They focus, they track whatmatters.
They read trends, not justreports.
So what's your haunted numberand what are you doing about it?
I'm Rob Powell, and if you'resleeping well tonight, it's
because you've already done themath.
If you want to lead withfinancial fluency and a human
heart, that's what we teach atthe University of Arkansas

(02:15):
Hospitality Management Program.
The industry needs more numberliterate leaders.
Let's build them.