KPIFinance

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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