Gross Operating Profit per Available Room (GOPPAR)
Gross operating profit divided by total available rooms
What is Gross Operating Profit per Available Room (GOPPAR)?
Gross operating profit per available room (GOPPAR) is the hotel's operating profit divided by the rooms available. It shows how much profit a hotel makes per room, not just revenue.
Unlike revenue per available room, it takes costs into account, so it shows whether revenue is actually turning into profit.
How this KPI is measured
- Function
- Finance
- Sub-function
- Profitability
- Industry
- Hospitality & Hotels
- Type
- Lagging
- Impact
- Financial control
- Unit
- $
- Measurement frequency
- Monthly
- Formula
- Gross Operating Profit / Total available room nights
How to calculate it
Divide gross operating profit by total available room nights.
For example, if gross operating profit is 900,000 over 12,000 available room nights, GOPPAR is 75.
Compare with revenue per available room. A hotel can have strong revenue but weak profit if costs are high.
Where it is used
Judging profitability
Look beyond revenue.
Comparing hotels
Benchmark on profit.
Guiding cost decisions
See the effect of costs.
How to improve it
Tips and common mistakes
- Use it alongside revenue per available room.
- Define gross operating profit consistently.
- Watch seasonal patterns.
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