GOPPAR, short for gross operating profit per available room, is a hotel profitability metric: gross operating profit for a period divided by the rooms available in that period. Gross operating profit is total revenue from rooms, food and other departments minus the costs of running them. Unlike RevPAR, it shows profit, not only revenue.
Also called gross operating profit per available room.
Read GOPPAR next to RevPAR in your monthly profit review or owner’s report. It is not RevPAR, which counts room revenue only. Nor is it TRevPAR, which counts revenue from every department but no costs. GOPPAR takes the operating costs out first.
Key points
- GOPPAR is gross operating profit divided by rooms available, for one stated period.
- The hard part is deciding which costs sit inside gross operating profit.
- Fill in a four-line profit boundary card with whoever keeps your books before the first calculation.
- When GOPPAR moves, say whether revenue rose or costs fell, and check service before you call a cost cut a gain.
What is GOPPAR?
GOPPAR tells you how much operating profit each room you could have sold brought in. Empty rooms still count in the denominator, as they do for RevPAR. The difference is the top line: profit after operating costs, not revenue.
Four nearby terms are easy to mix up with it:
- RevPAR: room revenue divided by rooms available. The revenue metric GOPPAR is set against.
- TRevPAR: total revenue per available room from every department. Still no costs taken out.
- Cost per occupied room (CPOR): defined room-related operating costs divided by occupied rooms.
- Net operating income or EBITDA: other profit measures with their own cost lists. Check which costs each one takes out before you set it next to GOPPAR.
Where published definitions disagree
The guides below share the formula. Where they differ is the cost line:
- HiJiffy’s article on GOPPAR says the expenses exclude taxes, interest and depreciation.
- Cvent’s guide to GOPPAR lists taxes among operating expenses.
- Mews’s guide to GOPPAR names departmental and undistributed costs, such as administration, marketing, utilities and maintenance.
Two hotels can follow two of these and call different numbers GOPPAR. So this page starts with the boundary.
How GOPPAR works in practice
The GOPPAR formula below follows our Tourism Finance Manager, whose file reads: “For a hotel, GOPPAR = gross operating profit / available rooms for the same period”.
The formulas
- GOPPAR = [gross operating profit in the period] ÷ [rooms available in the period]
- Gross operating profit = [total revenue in the period] minus [operating costs inside your boundary, same period]
The profit boundary card
Fill this in once with whoever keeps your books, before you calculate GOPPAR for the first time. Our Tourism Revenue Advisor sets the same condition: “GOPPAR = gross operating profit / available rooms, with the profit boundary confirmed with Finance.”
| Line | What to write |
|---|---|
| 1. Revenue counted | Every department, each named: rooms, food and beverage, other services you sell |
| 2. Costs inside gross operating profit | Departmental and undistributed costs, each listed by name: for example housekeeping, kitchen, administration, marketing, utilities, maintenance |
| 3. Costs outside | Taxes, interest, depreciation and anything else your books treat below gross operating profit, written down so the next period uses the same list |
| 4. Rooms available | The same count you use for RevPAR in the same period, so the two figures sit side by side. Count available room-nights across the period, including nights that went unsold. |
If you change a line, recalculate the periods you compare against.
Reading a change in GOPPAR
This page sorts the reading of a change into three steps:
- Same card. Check that both periods used the same four lines. A cost moved from line two to line three changes the figure, not your business.
- Revenue or costs. Compare total revenue per available room (TRevPAR) and operating costs per available room, using the same period and room-night denominator. GOPPAR equals the first minus the second. Identify which changed, or whether both did. Use department figures to explain the revenue change.
- Service check. When costs fell, read guest feedback and service results for the same period before calling it a gain. Our Tourism Finance Manager warns: “A cost reduction that harms service or capacity may reduce future value.”
For tours and attractions
Do not copy the room formula. The Tourism Finance Manager’s file says to “Avoid applying hotel metrics to unrelated businesses without adaptation.” Our advice: keep the idea, operating profit per unit of capacity, and swap in the unit you sell, such as places per departure.
An illustrative example (not a real business)
A family-run inn with a small restaurant fills in the card with its bookkeeper:
- Revenue counted: rooms and the restaurant.
- Costs inside: housekeeping, kitchen, utilities, marketing and maintenance.
- Costs outside: loan interest and depreciation.
- Rooms available: the same night-by-night count the inn uses for RevPAR.
Next quarter, GOPPAR is up while RevPAR is flat. Step one: both quarters use the same cost boundary and have the same total available room-nights. Step two: room and restaurant revenue held, while the expense records show lower housekeeping costs after the inn stopped daily room cleaning on longer stays.
Step three changes the verdict. The owner reads that quarter’s guest comments and finds complaints about towels. The inn adds cleaning on request, then checks whether the saving survives and towel complaints fall.
Why GOPPAR matters for small hotels and guest houses
RevPAR can rise while your profit stands still. Our Tourism Finance Manager’s file asks you to “Compare gross revenue with gross operating profit, margin and cash impact.”
The boundary is where the figure goes wrong. Without a written card, a cost can drift from inside to outside between months, and GOPPAR rises with nothing real behind it.
Cost cuts can also pass for progress: fewer cleanings lift GOPPAR now, and the bill can arrive later in reviews.
Before you act on a GOPPAR change, check the card, then the cause, then the service.
How to get started with GOPPAR
- Fill in the card. Sit down with whoever keeps your books and agree the four lines.
- Reuse your RevPAR room count. Same period, same rooms available.
- Recalculate a past period. Run the same month last year on the same card.
- Review it monthly next to RevPAR. Same report, same period.
- Run the three steps on every change. Same card, revenue or costs, then the service check.
How we help. The Tourism Revenue Advisor defines GOPPAR with period and denominator, with the profit boundary confirmed with Finance. The Tourism Finance Manager compares gross revenue with gross operating profit, margin and cash impact, and uses customer feedback and service metrics when interpreting finance outcomes. The Hotel Management Expert uses weekly budget and monthly occupancy reports to identify volume, price, mix and cost changes. The Resorts Specialist reviews monthly profitability and guest feedback.
Apply it with your AI assistant. Copy this into the assistant you already use:
I'm reading this page about GOPPAR: https://traveltech.digital/glossary/goppar/ Can you help me see how it applies to my work, and what I could do first? Use what you already know about me. If something important is missing, ask me instead of guessing.
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Frequently asked questions
What is GOPPAR in hotel management?
GOPPAR is gross operating profit per available room. It divides a hotel’s gross operating profit for a period by the rooms it had available in that period. Gross operating profit is total revenue from every department minus the operating costs of running them.
Read it next to RevPAR. RevPAR shows how well rooms earned revenue; GOPPAR shows how much revenue stayed as operating profit.
How do you calculate GOPPAR for a hotel?
You calculate it in two steps, using the same period throughout:
- Gross operating profit = [total revenue] minus [operating costs inside your boundary]
- GOPPAR = [gross operating profit] ÷ [rooms available]
Before the first calculation, write down which costs sit inside gross operating profit and which stay outside, such as taxes, interest and depreciation. Count rooms available as you do for RevPAR. Then keep both rules fixed.
How is GOPPAR different from RevPAR?
RevPAR divides room revenue by rooms available. GOPPAR divides gross operating profit by the same rooms available. GOPPAR also counts revenue from every department, not only rooms.
The two can move apart. A discount that fills rooms can lift RevPAR while extra cleaning and commission costs hold GOPPAR flat. A cost cut can lift GOPPAR while RevPAR stays still. Read them side by side.
What costs are included when calculating gross operating profit?
Gross operating profit takes out the costs of running the hotel, departmental and undistributed. Listed by name, that can mean housekeeping, the kitchen, administration, marketing, utilities and maintenance. Published guides disagree at the edges, taxes in particular.
Our advice: agree the list with whoever keeps your books and write it down. Put taxes, interest, depreciation and anything else your accounts treat below gross operating profit on a separate line marked outside. Then use that same list every period.
What is a good GOPPAR?
In our view, a good GOPPAR beats your own figure for the same period last year, calculated on the same profit boundary card, without a hidden cost to service. A single figure from another hotel tells you little unless you know which costs it counted.
A revenue-led gain still needs checking for repeatability, changes in available room-nights, and effects on service. A gain that came from cutting costs holds up only if guest feedback and service results for the same period held up as well.
Sources
- Mews, blog post on GOPPAR, checked 2026-10-19.
- Cvent, blog post on GOPPAR, checked 2026-10-19.
- HiJiffy, article on GOPPAR and gross operating profit, checked 2026-10-19.
