GOPPAR (Gross Operating Profit Per Available Room)
Last updated:
In short
GOPPAR (Gross Operating Profit Per Available Room) measures profitability per room before financing, depreciation, taxes, and capex. It equals gross operating profit divided by available rooms.
Formula
GOPPAR = Gross Operating Profit / Available Rooms Gross Operating Profit = Total Revenue − Operating Expenses (excludes interest, taxes, depreciation, amortisation)
Worked example
GOPPAR (Gross Operating Profit Per Available Room)
GOPPAR moves the conversation from revenue to profit. Two properties with identical RevPAR can have very different GOPPAR if one runs higher labour costs or lower F&B margins. Owners and asset managers prefer GOPPAR because it captures operational efficiency, not just topline performance. The trade-off: GOPPAR is harder to benchmark across properties because cost structures vary so much by location, brand standards, and service model.
Why it matters
Owners write cheques against profit, not RevPAR. A property optimising RevPAR through aggressive distribution may post lower GOPPAR than a property with weaker RevPAR but tighter cost control. Mature operators report both.
Free calculators
Frequently asked questions
GOP excludes financing costs (interest), corporate taxes, depreciation, amortisation, and capital expenditure. Everything else operational stays in.
Close but not identical. GOPPAR uses gross operating profit (a hotel-specific definition from the USALI standard); EBITDA per room uses the accounting definition. The numbers usually run within a few percent of each other.
It depends on segment and geography. Limited-service properties in secondary markets may run €20-40 GOPPAR; full-service luxury can exceed €150. Compare to your competitive set, not to industry averages.
Run this in your hotel
Guestivo gives small and boutique hotels a complete guest portal — no app, no install. Try the live demo or talk to our team.
Related terms
Written by
Maciej Dudziak
Co-founder
.NET developer with 10+ years of experience building scalable back-end systems. Specializes in .NET, Azure, and modern databases.
Published: May 15, 2026