Performance & revenue
GOPPAR
Also written: gross operating profit per available room
What GOPPAR means
Gross Operating Profit Per Available Room (GOPPAR) measures a hotel's total operational profitability per room night, regardless of whether those rooms were sold. Distinct from revenue metrics, it reflects management's control over operating costs alongside revenue generation across all hotel departments.
Formula
GOPPAR = Gross Operating Profit / Total Available Rooms
How it is used
Revenue managers and asset managers use GOPPAR to evaluate operational efficiency rather than top-line revenue alone. Unlike RevPAR, which ignores expenses, GOPPAR accounts for labor, cost of sales, undistributed operating expenses, and non-room revenues like food, beverage, and spa. Owners rely on this metric during operational reviews to determine whether promotional strategies generate genuine profit or merely boost volume at unsustainable acquisition costs. It directly influences executive incentive compensation and asset valuation models.
Worked example
A 200-room hotel generates $4,000,000 in total operating revenue over a 30-day period ($6,000,000 available room nights = 200 × 30). Total operating expenses across all departments equal $2,500,000, leaving a Gross Operating Profit of $1,500,000. GOPPAR is $1,500,000 / 6,000 available rooms = $250.00.
Common mistake
Confusing GOPPAR with Net Operating Profit Per Available Room by failing to exclude fixed charges like property taxes, insurance, and interest expenses.
Related terms
Work it out
RevPAR Calculator — Work out revenue per available room from occupancy and rate — or from total revenue.
GOPPAR in our reporting
Recent stories where this term does real work.
Frequently asked
+What does GOPPAR mean in a hotel?
Gross Operating Profit Per Available Room (GOPPAR) measures a hotel's total operational profitability per room night, regardless of whether those rooms were sold. Distinct from revenue metrics, it reflects management's control over operating costs alongside revenue generation across all hotel departments.
+How is GOPPAR calculated?
GOPPAR = Gross Operating Profit / Total Available Rooms
+What is an example of GOPPAR?
A 200-room hotel generates $4,000,000 in total operating revenue over a 30-day period ($6,000,000 available room nights = 200 × 30). Total operating expenses across all departments equal $2,500,000, leaving a Gross Operating Profit of $1,500,000. GOPPAR is $1,500,000 / 6,000 available rooms = $250.00.
+What is the most common mistake with GOPPAR?
Confusing GOPPAR with Net Operating Profit Per Available Room by failing to exclude fixed charges like property taxes, insurance, and interest expenses.