GOPPAR, or Gross Operating Profit per Available Room, is a key performance indicator used in the hotel industry to measure the financial health and profitability of a hotel. It provides insights into the hotel's ability to generate revenue and control costs.
Gross Operating Profit per Available Room (GOPPAR) is a key performance indicator used in the hotel industry to measure the financial performance of a hotel. It is calculated by dividing the gross operating profit of a hotel by the number of available rooms. GOPPAR provides a measure of how much profit a hotel is generating for each room that is available for sale.
GOPPAR is an important metric for hotel owners and operators as it helps them to assess the profitability of their hotel. A high GOPPAR indicates that a hotel is generating a healthy profit, while a low GOPPAR indicates that a hotel is struggling financially.
There are a number of factors that can affect GOPPAR, including:
To calculate the GOPPAR, you will need the following information:
Once you have this information, you can calculate the GOPPAR by dividing the gross operating profit by the number of available rooms.
For example, if a hotel has a gross operating profit of $100,000 and 100 available rooms, the GOPPAR would be $1,000.
A: The GOPPAR formula is calculated by dividing the gross operating profit of a hotel by the total number of available rooms. The formula is: GOPPAR = Gross Operating Profit / Number of Available Rooms.
A: A "good" GOPPAR varies widely depending on factors such as location, hotel type, and market conditions. Generally, a higher GOPPAR indicates better financial health and profitability of a hotel. Benchmarking against similar hotels in the same market can provide a more specific target.
A: For example, if a hotel has a gross operating profit of $50,000 in a month and has 100 rooms available, the GOPPAR would be $500. This means the hotel earns an average gross profit of $500 per available room during that month.
GOPPAR is the truest measure of hotel performance because it captures both revenue generation and cost control. A hotel can have high RevPAR but mediocre GOPPAR if operating costs are out of control. The properties with the best GOPPAR in our network share one trait: they've automated the repetitive operational tasks that drain staff time - housekeeping coordination, guest FAQ handling, and maintenance scheduling.
— HelloShift Team
Improving GOPPAR requires attacking both sides of the equation - driving revenue through better guest experience while reducing operating costs. Hotels using AI-powered call answering, automated housekeeping, and preventive maintenance see gains on both fronts simultaneously.
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