What Is GOPPAR?
Let’s start with the basics: GOPPAR stands for Gross Operating Profit Per Available Room. It’s a metric used by hotels to measure profitability. Not just revenue. Not just room sales. Actual operating profit per available room.
While metrics like RevPAR and ADR are important, GOPPAR goes a step further. It accounts for your operating expenses and shows how efficiently your hotel is turning revenue into profit.
GOPPAR Definition
GOPPAR = your hotel’s gross operating profit divided by the number of available rooms in a given period.
It’s that simple. But don’t let the simplicity fool you. GOPPAR is one of the clearest indicators of operational health in the hotel business.
Benefits of Tracking
GOPPAR
Tracking GOPPAR goes beyond just looking at profit margins — it gives hoteliers the insights they need to operate more efficiently and make confident decisions.
Here’s why it’s worth your attention:
If your goal is long-term profitability, keeping a close eye on GOPPAR should be non-negotiable. It gives you the big picture and helps ensure every decision contributes to stronger margins.
1
Improved forecasting
With GOPPAR trends in hand, you can predict financial performance more accurately and plan ahead.
2
Better benchmarking
Compare performance between properties or departments using a consistent metric that includes expenses.
3
Smarter cost control
Identify where operating costs are impacting your profit and make targeted adjustments.
4
Informed strategic planning
GOPPAR provides the clarity needed to support growth strategies, capital investments, and staffing decisions.
5
Revenue quality insights
Unlike top-line metrics, GOPPAR tells you how profitable your revenue is — not just how much you’re making.
Here’s the exact GOPPAR formula you’ll want to remember:
GOPPAR = Gross Operating Profit ÷ Total Available Rooms
Let’s break that down further:
GOPPAR Example
Let’s say:
Gross Operating Profit = $450,000 - $300,000 = $150,000
Total Available Rooms = 100 rooms x 30 days = 3,000
So:
GOPPAR = $150,000 ÷ 3,000 = $50
That’s your GOPPAR calculation.
If you want to crunch your own numbers quickly, a simple GOPPAR calculator can help. Once you understand the formula, it’s easy to keep an eye on manually too.
Some revenue management platforms let you plug in your data and view daily or monthly GOPPAR dashboards. This lets you act fast if performance dips.
Why GOPPAR Matters
If RevPAR tells you how much you’re making per room, GOPPAR tells you how much you’re keeping. That’s a big difference.
You can have strong occupancy and decent room rates, but if your operating costs are out of control, your actual profit could be far lower than expected. That’s where GOPPAR in hotels becomes a critical tool.
Here’s why hotels use GOPPAR:
It reflects real profitability
It accounts for how efficiently a hotel is managed
It helps you compare performance across departments and properties
It’s more useful than revenue metrics alone when planning for long-term growth
So how does GOPPAR stack up against other popular metrics?
Room rate and GOPPAR have a strong relationship, but they’re not the same. Boosting your rate won’t help if your costs rise even faster.
GOPPAR offers a more complete picture. It helps hoteliers balance rate strategy with cost control. And that’s what makes it essential for sustainable growth.
What Does It Mean When GOPPAR Is Low?
If your GOPPAR is trending down, it’s a red flag that something isn’t working as it should. Typically, a dip in GOPPAR signals:
Beyond the obvious, a low GOPPAR might also reflect:
High labour costs that aren’t matched by productivity or demand
Seasonal downturns without corresponding cost reductions
Inefficiencies in food, beverage, or housekeeping operations, such as over-ordering, poor scheduling, or waste
Outdated systems or equipment increasing utility costs
Ineffective marketing spend that attracts high volume but low-yield bookings
What Is a Good GOPPAR?
There’s no universal benchmark, it varies by region, segment, and season. But here’s a rough guide:
What matters more is your average GOPPAR over time. If you see it consistently climbing, you’re doing something right. If not, it’s time to dig deeper.
Compare against competitors in your area and hotel class. Look at what’s driving their results. Then figure out how to apply it to your own strategy.
Strategies to Improve Your GOPPAR
Improving GOPPAR is about more than increasing rates. It’s about running a smarter operation.
Here are some proven tactics:
Optimise Staff Scheduling
Use data to staff efficiently. Avoid overstaffing on slow days and understaffing on peak nights. Smart scheduling saves money and improves guest satisfaction.
Offer Exclusive Member Benefits
Includes lounge access, late checkout, and higher-tier amenities.
Upsell and Cross-sell
Use Real-Time Data
React to pacing and performance in real time. Platforms like Roomstay give you the visibility to do this, so you’re not just reacting, you’re planning.
Review Supplier Contracts
From linen services to food suppliers, small changes here can make a big impact on your bottom line. Renegotiating or switching suppliers can free up profit.
Monitor Profit by Department
Not every part of your business contributes equally to your GOPPAR. Tracking departmental profit: housekeeping, front desk, food and beverage, helps you focus your efforts where they’ll count most.
Invest in Staff Training
Operational mistakes can be costly. Training staff to work efficiently and upsell effectively can have a direct impact on profit.
Using Tech to Track and Improve GOPPAR
The Roomstay platform is built to support the kind of data-driven decisions that can lift profitability.
With reporting tools, intuitive dashboards, and integration support, Roomstay gives hoteliers greater visibility over the metrics that matter.
Once you’re set up, you can:
Pull data from across your existing tools into one clear interface
Identify trends in revenue and cost across different properties or departments
Use insights to support strategy, promotions, and supplier reviews
Reduce manual reporting so teams can focus on performance
Roomstay can help increase your direct bookings by optimising the guest experience and streamlining your digital touchpoints. A higher conversion rate can lead to stronger revenue, and when paired with efficient cost control, this ultimately lifts your GOPPAR.
So, what is GOPPAR in hotels? It’s one of the most useful ways to measure how your business is really performing. It doesn’t just look at how many rooms you’re filling, it shows how well you're turning that into actual profit.
Once you understand the GOPPAR formula and how to use it, you can start making smarter decisions across every area of your hotel. From staffing and energy use to upsells and supplier costs, it all adds up.
If you're ready to make more informed moves, increasing your booking conversion rate with Roomstay can help lift your GOPPAR, giving you clearer insight into performance without the manual headaches.
