Sesion / Glossary / GOPPAR (Gross Operating Profit per Available Room)

GOPPAR (Gross Operating Profit per Available Room)

Revenue & Pricing

GOPPAR (Gross Operating Profit per Available Room) is gross operating profit divided by available rooms. Unlike RevPAR, it accounts for operating costs, so it reflects how profitably a hotel runs, not just how much revenue it books.

In practice

GOPPAR captures the effect of distribution costs, labor, energy and departmental expenses. Two hotels with identical RevPAR can have very different GOPPAR if one depends heavily on commissioned business or runs inefficient operations.

Because it needs full profit and loss data, GOPPAR is usually reviewed monthly rather than daily. It is the metric that connects revenue management decisions to what owners actually care about, which is profit per room, not gross bookings.

← sesion.org · All categories · Advisors · Blog · Glossary