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What is GOPPAR (Gross Operating Profit Per Available Room)?

Updated 2026-05-28

GOPPAR, or Gross Operating Profit Per Available Room, is a financial metric that evaluates a property's performance by measuring profit relative to the number of rooms available. It is calculated by dividing the Gross Operating Profit (GOP) by the total number of available rooms over a given period.

GOP itself is derived by subtracting departmental and operating expenses from total revenue. This metric gives a comprehensive view of financial health by assessing how effectively a property converts revenue into actual profit.

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How it works

To calculate GOPPAR, you first determine the Gross Operating Profit (GOP). This is done by taking the total revenue from all sources (including room sales and ancillary services) and subtracting the total operating expenses, which include costs like housekeeping, utilities, marketing, and maintenance labor.

The resulting GOP figure is then divided by the total number of available rooms during that period, regardless of whether they were occupied. The formula is: GOPPAR = (Total Revenue - Operating Expenses) / Total Available Rooms.

The result indicates the profit generated on a per-available-room basis.

Why it matters

Unlike metrics that only track revenue, such as RevPAR, GOPPAR provides a more complete picture of profitability by incorporating operational costs. This allows owners and managers to understand the true financial performance and efficiency of their property.

Analyzing GOPPAR helps identify areas where costs may be too high or where revenue generation isn't translating effectively to the bottom line. It's a critical tool for making informed strategic decisions about pricing, expense management, and investments.

Examples

  • A property manager of a 10-unit aparthotel analyzes their monthly report and sees a GOPPAR of $75. They compare this to an industry benchmark of $65 for similar properties, confirming their strong performance in managing costs relative to revenue.
  • After installing energy-efficient appliances, a host notices their GOPPAR increases from $90 to $98 over the following quarter despite similar occupancy rates, directly reflecting the savings on utility expenses.
  • A host considering adding a hot tub uses forecasts to estimate the increase in both revenue from higher rates and operating expenses from maintenance. This allows them to project the potential impact on GOPPAR before committing to the investment.
  • During the off-season, a property's RevPAR remains steady due to consistent bookings, but its GOPPAR drops. This prompts the manager to investigate and discover that higher-than-budgeted heating costs significantly eroded profitability.

Frequently asked questions

What is the difference between GOPPAR and RevPAR?+
RevPAR (Revenue Per Available Room) measures the revenue generated per available room, focusing solely on the income side. GOPPAR (Gross Operating Profit Per Available Room) provides a deeper analysis by measuring profitability per available room, as it subtracts operating expenses from the revenue before the calculation.
What expenses are typically included when calculating Gross Operating Profit (GOP)?+
The calculation for GOP includes most operational costs directly associated with running the property. This covers expenses such as housekeeping salaries, cleaning supplies, utilities, routine maintenance, marketing spend, and OTA commissions. It generally excludes non-operating or fixed costs like property taxes, mortgage payments, insurance, and capital depreciation.
How can I improve my property's GOPPAR?+
You can improve GOPPAR by either increasing total revenue or decreasing operating expenses. Strategies include optimizing pricing to boost revenue, upselling ancillary services like late check-outs, and controlling costs by implementing energy-saving measures or optimizing cleaning schedules. Property management systems like Lodgify can help track revenue and expenses to monitor this metric.
Is GOPPAR useful for single-property vacation rentals?+
Yes, GOPPAR is very useful for single-property owners. It helps them move beyond just tracking booking revenue to understand the true profitability of their rental after accounting for all operational costs, providing a clear indicator of financial performance and efficiency.
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