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What is GOPPAR and how does it differ from RevPAR?
GOPPAR, gross operating profit per available room, is gross operating profit divided by rooms available in the period. Unlike RevPAR, which stops at room revenue, GOPPAR reflects revenue from all departments minus the costs of running the property.
Formula in words: total revenue minus departmental costs and undistributed operating expenses (before fixed charges such as financing and depreciation, depending on the accounting standard), divided by available rooms.
It matters because it shows whether revenue growth is actually leaving profit.
Commonly misread:
- Gross operating profit definitions vary, so check which standard or internal policy applies.
- Comparing it between properties with different services such as spas or restaurants.
Always document the cost items included, so that results are comparable across properties and over time.
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