Revenue
GOPPAR
Gross Operating Profit Per Available Room
GOPPAR (Gross Operating Profit Per Available Room) measures gross operating profit for every available room, capturing both revenue performance and how efficiently the hotel is run.
Formula
GOPPAR = Gross operating profit ÷ Available room-nights
Where RevPAR and TRevPAR stop at revenue, GOPPAR subtracts operating costs. That makes it the metric owners and asset managers tend to care about most, because two hotels can post identical RevPAR and deliver very different profit depending on labour, energy and distribution costs.
GOPPAR is also the metric most sensitive to operational automation. Revenue gains usually require winning more demand; cost gains can come from removing manual work that never needed a person. A hotel that holds revenue flat while cutting hours of administrative work improves GOPPAR without selling a single extra room.
It is calculated below the departmental level but above fixed charges such as rent, interest and depreciation — so it reflects management performance rather than the ownership structure.
The clearest lever most hotels have on GOPPAR is the hours spent on repetitive administrative work. Properties running Venli report roughly 40 hours a week returned per property.
Frequently asked questions
What is GOPPAR?
GOPPAR (Gross Operating Profit Per Available Room) measures gross operating profit for every available room. Where RevPAR and TRevPAR stop at revenue, GOPPAR subtracts operating costs, so it captures both revenue performance and how efficiently the hotel is actually run.
How do you calculate GOPPAR?
Divide gross operating profit by available room-nights. It is calculated below the departmental level but above fixed charges such as rent, interest and depreciation, so it reflects management performance rather than the ownership or financing structure of the property.
What is GOPPAR in the hotel industry?
GOPPAR is the metric owners and asset managers care about most, because two hotels can post identical RevPAR and deliver very different profit depending on labour, energy and distribution costs. It is also the metric most sensitive to removing manual administrative work.
Related terms
- RevPAR — RevPAR (Revenue Per Available Room) measures how much room revenue a hotel earns for every room it has available, whether or not that room was sold. It combines rate and occupancy into a single number, which is why it is the most widely used performance metric in hotel revenue management.
- TRevPAR — TRevPAR (Total Revenue Per Available Room) measures all revenue a hotel earns per available room — rooms, food and beverage, spa, events and any other outlet — not just the room rate.
- Night Audit — The night audit is the daily close of a hotel’s books, run overnight, which reconciles the day’s transactions, posts room and tax charges, and rolls the property into the next business day.
- CPOR — CPOR (Cost Per Occupied Room) is the average cost of servicing each room sold: the rooms department’s operating costs divided by the number of occupied rooms. It measures how efficiently a hotel turns rooms, independent of what it charges for them.
- Hotel Asset Management — Hotel asset management is the practice of managing a hotel as an investment on behalf of its owner — overseeing the operator, capital spending and strategy so the property delivers the best possible return over the ownership period.