GOPPAR

GOPPAR is the abbreviation for gross operating profit per available room, a key performance indicator for the hotel industry.

It gives greater insight in the actual performance of a hotel than the most commonly used RevPAR as it not only considers revenues generated, but also factors in operational costs related with such revenues.^[1]

The definition of GOPPAR is the following:

'GOPPAR, or gross operating profit per available room, is defined as total gross operating profit (GOP) per available room per day, where GOP is equal to total revenue less the total departmental and operating expenses. The following table illustrates the computation of GOPPAR.'

GOPPAR = G.O.P. (gross operating profit) / Available Rooms

GOPPAR does not take into consideration the revenue mix of the hotel. So it does not allow an accurate evaluation of the room revenue generated. It is however a good key performance indicator for the efficiency and effectiveness of your hotel operations. It demonstrates the profitability and value of the property as a whole.

See also