Gross operating profit per available room measures real profitability, not just revenue. It subtracts operating costs before profit and divides by available rooms. It is the metric owners and investors watch most closely.
Example A hotel with strong RevPAR but runaway costs can post a disappointing GOPPAR.
GOPPAR stands for Gross Operating Profit Per Available Room, a metric that measures a hotel's real profitability by subtracting operating costs from total revenue and dividing by available rooms.
How is GOPPAR calculated?
You calculate GOPPAR by dividing total gross operating profit (total revenue minus operating expenses) by the number of available rooms. For instance, if a hotel earns 500,000 dollars in gross operating profit in a month with 100 available rooms per night, the GOPPAR is 166.67 dollars per available room per night.
How is GOPPAR different from RevPAR?
RevPAR only tracks revenue per available room, while GOPPAR subtracts operating costs to show actual profit. A hotel could have high RevPAR but low GOPPAR due to high expenses, which is why owners and investors use GOPPAR for a clearer picture of operational efficiency and net profitability.
Notitur is an independent digest. It is not the official site of any brand mentioned. Content is editorial and produced with AI assistance and editorial review, and may contain errors. Verify anything important with the original source. This is not financial, legal or investment advice. Some links or blocks may be sponsored or affiliate. Trademarks belong to their owners. You can unsubscribe at any time with one click, and you can request access or deletion of your data at notitur.com/contact.
The daily brief
Notitur in your inbox
One sharp travel-industry brief a day. Free.
We use our own and third-party cookies. By continuing you accept the Terms and the Cookie Policy.