What is GOPPAR in the hotel industry

Definition

GOPPAR (Gross Operating Profit Per Available Room) is the metric that measures a hotel's real profitability per available room, after operating expenses are deducted. Unlike RevPAR or TRevPAR, which look at revenue, GOPPAR shows how much profit is actually left.

That is why it is the favorite metric of owners and investors: it reflects how efficiently the hotel turns revenue into operating profit. A hotel can post a high RevPAR and a weak GOPPAR if its costs are out of control.

GOPPAR ties commercial strategy to cost management, and it is especially valuable for comparing financial health across periods or across properties within the same group.

Formula

GOP is total revenue minus operating costs. It is divided by available rooms in the period, just like RevPAR and TRevPAR.

Industry benchmark

GOPPAR varies with cost structure and hotel model; these ranges are illustrative.

How to improve it

• Grow direct revenue to reduce the weight of commissions in the cost structure.
• Optimize operating costs without hurting the guest experience or service quality.
• Raise total revenue per guest (TRevPAR) with high-margin services and experiences.
• Automate repetitive tasks to cut workload and labor costs.

Related terms