GOPPAR (Gross Operating Profit per Available Room)

GOPPAR (Gross Operating Profit per Available Room) measures a hotel's gross operating profit per available room. Unlike RevPAR and TRevPAR, which only look at revenue, GOPPAR accounts for operating costs — making it the best top-level proxy for a property's actual profitability.

Formula

GOPPAR = Gross Operating Profit / Number of Available Rooms

Where Gross Operating Profit (GOP) = total revenue minus operating expenses (but before fixed costs like rent, insurance, and depreciation).

Why it matters

A hotel can grow RevPAR by running expensive marketing campaigns or discounting through high-commission channels — and still see profits fall. GOPPAR cuts through that by measuring what actually drops to the bottom line per room. Asset owners and investors increasingly prefer GOPPAR over RevPAR as a performance benchmark.