GOPPAR Calculator

GOPPAR stands for Gross Operating Profit Per Available Room. It measures the operating profit a hotel generates for each available room, after operating costs but before fixed charges like rent, interest, depreciation and tax. It is calculated as Gross Operating Profit (total revenue minus total operating costs) divided by available room-nights. GOPPAR is widely regarded as the truest single measure of a hotel's operating performance because, unlike RevPAR, it accounts for costs as well as revenue.

RevPAR only looks at room revenue per available room; it ignores costs and ignores all non-room revenue. GOPPAR looks at total revenue (rooms, F&B and other) minus all operating costs, divided by available rooms. A hotel can grow RevPAR by discounting to fill rooms yet see GOPPAR fall because the extra occupancy cost more than it earned. Investors and owners watch GOPPAR precisely because it cannot be inflated by revenue that comes at a loss.

First compute Gross Operating Profit (GOP) = total revenue minus total operating costs. Then divide GOP by the available room-nights (rooms available x nights in the period). The result, GOPPAR, is expressed in euros per available room. GOP margin % is GOP divided by total revenue, showing what share of every euro of revenue survives as operating profit.

Operating costs (sometimes called departmental and undistributed operating expenses) include payroll, room and F&B department costs, sales and marketing, utilities, repairs and administrative expenses. They exclude fixed charges below the GOP line: rent or lease, property taxes, insurance, interest, depreciation and amortisation. Keeping that distinction is what makes GOP and GOPPAR comparable across properties with different ownership structures.

GOP margins vary widely by segment and location, but full-service hotels commonly target a GOP margin in the 30-45% range, while well-run limited-service properties can exceed that because they carry lower departmental costs. As with all hotel KPIs, the most useful comparison is against your own trend and your competitive set rather than a fixed benchmark.