Gross Operating Profit Per Available Room Calculator
A Simplified Calculation of Your Total Revenue
Calculate your hotel’s GOPPAR
What is Gross Operating Profit per Available Room?
Gross Operating Profit per Available Room (GOPPAR) is a hotel performance metric that shows the actual profit a hotel makes for each available room, after covering operating expenses.
GOPPAR Formula
GOPPAR = Gross Operating Profit ÷ Total Available Rooms
Where:
Gross Operating Profit (GOP)
is the revenue remaining after deducting all operating expenses, excluding taxes, interest, depreciation, and amortization.Total Available Room
refers to the total number of rooms in your hotel, whether occupied or not.
GOPPAR indicates how effectively your hotel runs. Its formula doesn’t just include revenue, but it also considers costs, showing your profit per room.
How Important is GOPPAR for Hotels?
Measuring your hotel’s GOPPAR goes beyond checking your revenue. This core metric provides you with insights into your expenses. GOPPAR shows all the key areas that cost you money and generate income, allowing you to be more efficient with your spending.
Compared to RevPAR (which shows the revenue per available room), GOPPAR gives a holistic view of your profit. From utilities and maintenance to supplies and marketing, it includes every expense and revenue stream that a room can have. The GOPPAR formula combines all these elements to provide a complete profit check per room.
Calculating GOPPAR is way easier if you’ve already calculated your GOP on a monthly or weekly basis.
GOP Formula
GOP = Total Revenue – Operating Expenses
Once you have this key performance indicator (KPI), measuring your hotel’s GOPPAR becomes a matter of seconds.
Decisions based on this metric allow hoteliers to track, plan, and execute effective hotel operations.
