Gross Operating Profit Per Available Room - a profitability metric that measures how much actual profit each available room generates.
GOPPAR (Gross Operating Profit Per Available Room) is a hotel profitability metric that goes beyond revenue-based measures like RevPAR. It calculates the gross operating profit generated per available room by subtracting operating expenses from total revenue before dividing by available rooms. GOPPAR provides a true picture of bottom-line performance because it accounts for the costs of generating revenue, not just the revenue itself.
While RevPAR tells you how much revenue each room generates, GOPPAR tells you how much profit. A hotel can have excellent RevPAR but poor GOPPAR if costs are too high. GOPPAR helps owners and managers understand whether revenue growth is translating into actual profitability, making it essential for investment decisions, operational benchmarking, and strategic planning.
GOPPAR is calculated by dividing gross operating profit by total available rooms:
GOPPAR = Gross Operating Profit ÷ Available Rooms Where: Gross Operating Profit = Total Revenue - Operating Expenses
Example:
If a 100-room hotel has total monthly revenue of €300,000 and operating expenses of €200,000: Gross Operating Profit = €300,000 - €200,000 = €100,000 GOPPAR = €100,000 ÷ (100 × 30) = €33.33 per available room per day
