Definition
GOPPAR is gross operating profit per available room — the metric that completes the RevPAR picture by bringing cost into it, so performance is judged on profit rather than revenue.
Also called: Gross Operating Profit Per Available Room
How it is calculated
- GOPPAR = Gross Operating Profit ÷ Total Available Rooms
In practice
RevPAR and TRevPAR are revenue metrics: they say nothing about what it cost to earn the revenue. Two hotels can post identical revenue and report very different profits, and the gap is rarely one big decision — it is a hundred smaller ones on the cost side.
GOPPAR is therefore the metric an owner should care about most, because it is the one that moves with both commercial performance and operating discipline. A revenue push bought with heavy commission, overtime and giveaway F&B can lift RevPAR and leave GOPPAR flat.
It is also the basis of the incentive fee in most hotel management contracts, which is why the contractual definition of gross operating profit deserves close reading before signing.
Why it matters to an owner
GOPPAR is where the owner's interest and the operator's reported success either align or diverge. Tracking it alongside RevPAR is what shows whether revenue growth is actually reaching the bottom line.
Frequently Asked Questions
Because RevPAR ignores cost. A hotel can grow RevPAR through high-commission channels, overtime and discounted F&B and see no improvement in profit. GOPPAR is what catches that.
Because the incentive fee in a management contract is usually a percentage of gross operating profit, and the contract defines what is deducted before GOP is calculated. Definitions move real money.