What is GOPPAR?
Gross Operating Profit Per Available Room (GOPPAR) measures the operating profitability of a hotel per available room.
GOPPAR goes beyond RevPAR by accounting for operating expenses. While RevPAR only considers room revenue, GOPPAR factors in all revenue streams (rooms, food and beverage, spa, etc.) minus operating costs. It gives a more accurate picture of actual profitability.
How to calculate GOPPAR
GOPPAR = Gross Operating Profit / Total Available Rooms
Example
A 100-room hotel has $50,000 in gross operating profit for the month over 30 days. GOPPAR = $50,000 / (100 x 30) = $16.67 per available room per day.
Why GOPPAR matters
RevPAR can look healthy while your hotel loses money on operations. GOPPAR reveals true profitability by including all revenue and subtracting costs. It is the metric that tells you whether your hotel is actually making money.
Related terms
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