GOPPAR, or gross operating profit per available room, is a hotel profitability metric that divides gross operating profit by the number of available rooms in a period. Unlike RevPAR, which counts only room revenue, GOPPAR nets out operating expenses across every department, so asset managers use it to judge whether a property converts revenue into profit.
How Is GOPPAR Calculated?
GOPPAR is calculated by dividing gross operating profit by the total available rooms for the period. The formula is GOPPAR = Gross Operating Profit / Available Rooms. Gross operating profit is total revenue from all departments, rooms, food and beverage, and other operations, minus departmental costs and undistributed operating expenses like administration, sales and marketing, utilities, and maintenance, before rent, interest, taxes, and depreciation.
Because it starts from all revenue and subtracts operating costs, GOPPAR captures both the top line and the efficiency of the operation. Two hotels with identical RevPAR can post very different GOPPAR if one runs a leaner cost structure. That is the metric's purpose: it rewards profitable revenue, not revenue alone.
Input | Definition |
Total revenue | Rooms, food and beverage, and other department revenue |
Operating expenses | Departmental costs plus undistributed operating expenses |
Gross operating profit | Total revenue minus operating expenses |
Available rooms | Sellable rooms times nights in the period |
According to HotStats, the Americas region posted a GOPPAR of $92.78 in a recent global performance review, second only to the Middle East at $103.61 and ahead of Europe at $83.60 and Asia-Pacific at $52.50. GOPPAR runs higher in luxury and major-city hotels, where higher rates and occupancy lift both revenue and profit per room.
Why GOPPAR Matters
GOPPAR matters because it is the hotel metric that ties revenue to profit, exposing operational problems that revenue metrics hide. A property can grow RevPAR while GOPPAR falls if labor and utility costs rise faster than revenue, a pattern that defined recent years. According to MMCG Invest, full-service hotel gross operating profit margins fell from 36.9 percent in 2019 to 33.5 percent in 2024 as costs outran revenue.
The operator value is diagnostic reach. GOPPAR captures ancillary revenue and every operating line, so it shows whether food and beverage, staffing, and marketing spend are pulling their weight. An owner or lender benchmarking a purchase reads GOPPAR to see the profit engine, not just the room-revenue top line that RevPAR reports.
Example
A 180-room hotel wants its monthly GOPPAR for a 30-night period. GOPPAR = Gross Operating Profit / Available Rooms settles it.
Component | Value |
Total revenue | $2,400,000 |
Operating expenses | $1,560,000 |
Gross operating profit | $2,400,000 - $1,560,000 = $840,000 |
Available rooms | 180 rooms x 30 nights = 5,400 |
GOPPAR | $840,000 / 5,400 = $155.56 |
The hotel earned $840,000 in gross operating profit on $2,400,000 of revenue, a 35.0 percent GOP margin, and spread it across 5,400 available room nights for a GOPPAR of $155.56. If operating expenses had risen $120,000 to $1,680,000, gross operating profit would fall to $720,000 and GOPPAR to $720,000 / 5,400 = $133.33, a $22.23 drop per room with revenue unchanged. GOPPAR isolates the cost hit that RevPAR would have missed.
Variations and Edge Cases
GOPPAR behaves differently depending on where the profit line is drawn and what revenue it counts, so two GOPPAR figures are only comparable when built from the same accounting. The table below lists the variants an asset manager should reconcile before benchmarking.
Variant | Treatment |
RevPAR | Room revenue per available room only; no expenses netted |
TRevPAR | Total revenue per available room; includes ancillary revenue, no expenses |
GOPPAR | Gross operating profit per available room; revenue minus operating expenses |
NOI per room | Nets management fees, insurance, and property taxes below GOP |
USALI alignment | Comparability depends on both hotels following Uniform System of Accounts for the Lodging Industry |
The common mistake is comparing a GOPPAR built to USALI standards against one that treats fixed charges or management fees inconsistently. The profit line must be drawn at the same place for the comparison to hold.
GOPPAR vs RevPAR
GOPPAR is often confused with RevPAR, and they measure different things. GOPPAR is gross operating profit per available room, a profit metric that nets out operating expenses across all departments. RevPAR is revenue per available room, a top-line metric that counts only room revenue and subtracts no costs.
The distinction is revenue versus profit. RevPAR tells you how much room revenue a property captures per available room; GOPPAR tells you how much of total revenue survives as operating profit per available room. A hotel can post strong RevPAR and weak GOPPAR if its cost structure is bloated, which is why owners underwriting a deal read both, not one.
Frequently Asked Questions
How do you calculate GOPPAR?GOPPAR equals gross operating profit divided by available rooms. Gross operating profit is total revenue from all departments minus operating expenses. A hotel with $840,000 in gross operating profit and 5,400 available room nights has a GOPPAR of $155.56.
What is the difference between GOPPAR and RevPAR?GOPPAR is gross operating profit per available room and nets out operating expenses across all departments. RevPAR is revenue per available room and counts only room revenue with no costs subtracted. GOPPAR measures profit efficiency; RevPAR measures room-revenue capture.
What is a good GOPPAR?There is no universal benchmark because GOPPAR depends on class, market, and cost structure. According to HotStats, the Americas region posted a GOPPAR of $92.78 in a recent global review. Luxury and major-city hotels run higher; judge a property against comparable assets.
Related Terms
RevPAR
Average Daily Rate
Net Operating Income
Operating Expense Ratio
Hotel Occupancy Rate