GOPPAR Calculator
Gross Operating Profit Per Available Room reveals your true bottom-line performance. Unlike RevPAR, GOPPAR accounts for operating costs—showing what actually flows to profit.
GOPPAR Calculator
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Formula
GOPPAR = Gross Operating Profit ÷ Available RoomsHow to Improve
- Focus on profit contribution, not just revenue—sometimes lower-rate guests are more profitable
- Optimize staffing schedules using occupancy forecasts to match labor costs to demand
- Implement energy management systems to reduce utility costs without affecting guest experience
- Negotiate annual supplier contracts for linens, amenities, and food supplies
- Automate routine tasks (check-in, housekeeping coordination) to reduce labor costs
Industry Benchmarks
| Hotel Type | Low | Average | High |
|---|---|---|---|
| Budget | $15.00 | $25.00 | $40.00 |
| Midscale | $30.00 | $50.00 | $75.00 |
| Upscale | $60.00 | $100.00 | $150.00 |
| Luxury | $120.00 | $200.00 | $350.00 |
What is GOPPAR (Gross Operating Profit Per Available Room)?
GOPPAR measures your hotel's actual operating profitability on a per-room basis. While RevPAR tells you how much revenue you generate, GOPPAR tells you how much profit remains after operating costs. It's calculated by dividing your Gross Operating Profit by the number of available rooms.
Gross Operating Profit (GOP) is your total revenue minus all operating expenses: payroll, utilities, supplies, marketing, maintenance, and administrative costs. It excludes fixed charges like rent, insurance, property taxes, and debt service. GOP represents what the hotel business itself earns before these ownership costs.
GOPPAR matters because revenue without profit is meaningless. A hotel might have impressive RevPAR but terrible GOPPAR if costs are out of control. Investors and operators increasingly focus on GOPPAR as the truest measure of hotel performance.
How to Calculate GOPPAR
First, calculate your Gross Operating Profit: Total Revenue (rooms + F&B + other) minus Total Operating Expenses (payroll, utilities, supplies, etc.). Then divide by your available room nights for the period.
For a monthly GOPPAR, use that month's GOP and multiply available rooms by days in the month. GOPPAR can be positive (profitable) or negative (operating at a loss).
Worked Example
- 1.Monthly total revenue: $450,000
- 2.Monthly operating expenses: $315,000
- 3.Gross Operating Profit: $135,000
- 4.Hotel has 100 rooms × 30 days = 3,000 available room nights
- 5.GOPPAR = $135,000 ÷ 3,000
Your GOPPAR is $45 per available room
Why GOPPAR is the Ultimate Profitability Metric
GOPPAR cuts through revenue vanity metrics to show real performance. Two hotels with identical RevPAR can have vastly different GOPPAR based on their cost structures. The hotel with better cost management wins.
GOPPAR also reveals the quality of revenue. Discounted OTA bookings that fill rooms but come with high commissions will show strong occupancy but weaker GOPPAR. Direct bookings at the same rate produce better GOPPAR because you keep more of each dollar.
For hotel owners and investors, GOPPAR directly correlates with property value and return on investment. Improving GOPPAR by $10 per room annually on a 100-room hotel means $365,000 more profit per year.
Limitations of GOPPAR
- •GOPPAR requires detailed financial data that smaller properties may not track precisely
- •Definition of 'operating expenses' can vary—ensure consistent methodology when benchmarking
- •Seasonal cost variations (heating, cooling, seasonal staff) make month-to-month comparisons tricky
- •New properties have higher startup costs that depress GOPPAR initially
- •GOPPAR excludes capital expenditures needed to maintain the property long-term
Related Hotel Metrics
RevPAR
Revenue Per Available Room shows top-line performance. GOPPAR adds the crucial cost layer.
TRevPAR
Total Revenue Per Available Room includes all revenue streams, feeding into GOPPAR.
Flow-Through
Percentage of incremental revenue that converts to profit. Strong flow-through means efficient operations.
CPOR (Cost Per Occupied Room)
Your variable cost to service each occupied room—helps optimize GOPPAR.
Frequently Asked Questions
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