GOPPAR (Gross Operating Profit Per Available Room)

GOPPAR Calculator: Formula, Examples and How to Improve It

GOPPAR (Gross Operating Profit per Available Room) measures your hotel's true profitability per room by combining every revenue stream with operating costs. Calculate it by dividing Gross Operating Profit (total revenue minus operating expenses) by total available rooms for the period.

What Is Gross Operating Profit per Available Room (GOPPAR)?

Gross Operating Profit per Available Room (GOPPAR) measures a hotel's true bottom-line profitability by looking at all revenue streams and operating costs, then dividing the result by the rooms available to sell. It answers a sharper question than revenue metrics do: how much profit does each available room actually generate?

Because it blends revenue and cost control into one number, GOPPAR sits at the center of any hotel revenue management strategy and gives owners and asset managers a clearer read on performance than room revenue alone.

What Is GOPPAR in Hotels?

In hotels, GOPPAR is the profitability counterpart to RevPAR. Two properties can post the same RevPAR yet very different GOPPAR, because one runs leaner or earns more from food and beverage, spa, and other services. That is why investors and management companies lean on GOPPAR to judge how well a hotel converts demand into profit, not just into sales.

The Importance of GOPPAR for Hotel Profitability

Revenue metrics tell you how much you sold. GOPPAR tells you how much you kept.

• True profitability: it captures both sides of the ledger, revenue and operating costs, in a single figure.
• Fair comparisons: dividing by available rooms lets you compare properties, periods, and departments of different sizes.
• Cost discipline: a rising RevPAR with a flat GOPPAR is a warning that costs are eating your gains.
• Investor confidence: GOPPAR is a standard number in hotel valuation and underwriting, so a strong trend supports financing and sale value.

How Is GOPPAR Calculated?

GOPPAR is calculated in three steps.

• Step 1: Find Gross Operating Profit (GOP).
  
  • GOP = Total Revenue - Total Operating Expenses.

Total revenue includes rooms, food and beverage, and ancillary income. Operating expenses include labor, utilities, maintenance, and departmental costs, before fixed charges like taxes and debt.

GOPPAR Formula

Exclude rooms that are permanently offline or out of order.

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• Step 2: Determine Total Available Rooms (TAR).
  
  • Total Room Count × Number of Days in the Period

The core formula is straightforward:

• Step 3: Divide GOP by TAR. This gives you the profit generated per available room for that specific timeframe.

GOPPAR = Gross Operating Profit (GOP) ÷ Total Available Rooms (TAR)

The two supporting formulas are:

• GOP = Total Revenue - Total Operating Expenses
• TAR = Total Room Count × Number of Days in the Period

How to Use the GOPPAR Calculator

You do not need to run the math by hand. Enter your Total Revenue, Total Operating Expenses, Room Count, and Number of Days into the roommaster's calculator and it returns your GOPPAR instantly. It applies the same three-step logic above, so you can test different cost and revenue scenarios in seconds and see the profit impact per room straight away.

Examples of Hotel GOPPAR Calculations

Take a 100-room hotel over a 30-day month, which gives 3,000 total available rooms (100 rooms multiplied by 30 days).

• Total revenue: $600,000 from rooms, food and beverage, and ancillary income.
• Total operating expenses: $360,000 in labor, utilities, maintenance, and departmental costs.
• Step 1, GOP: $600,000 minus $360,000 = $240,000.
• Step 2, TAR: 100 rooms multiplied by 30 days = 3,000.
• Step 3, GOPPAR: $240,000 ÷ 3,000 = $80.

So this property earns $80 of operating profit per available room. For context, its gross operating profit margin is $240,000 ÷ $600,000, or 40%.

What Affects Your GOPPAR?

GOPPAR moves whenever revenue or cost changes, which makes it sensitive to decisions across the whole property:

• Room revenue: rate and occupancy still drive the largest share of the number.
• Non-room revenue: food and beverage, spa, parking, and events lift GOP without adding rooms.
• Labor costs: payroll is usually the biggest operating expense and the strongest lever.
• Distribution costs: high OTA commissions reduce the revenue you actually keep.
• Utilities and maintenance: energy and upkeep quietly erode profit if left unmanaged.

Tracking GOPPAR Performance

GOPPAR is most useful as a trend, not a one-off figure. Track it monthly against your budget, year over year to strip out seasonality, and against a competitive set where data is available. There is no universal good GOPPAR, since it depends on your market, service level, and cost base, so the reliable test is whether your GOPPAR is rising over comparable periods and holding up against similar properties. Pair it with RevPAR and TRevPAR so you can see revenue and profit side by side.

How to Use GOPPAR in 2027

As labor and energy costs stay high, GOPPAR is becoming the profitability KPI hoteliers watch most closely. Use it as the number that keeps revenue and cost decisions honest: connect it to live PMS data so it updates automatically, review it alongside RevPAR at every revenue meeting, and model cost scenarios before you commit to rate or staffing changes. Properties that manage to GOPPAR, not just to occupancy, protect margin even when demand softens.

GOP vs GOPPAR vs RevPAR vs Gross Profit Margin vs TRevPAR

These metrics are related but answer different questions, so read them together.