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HOSPITALITY GLOSSARY TERM
Gross Operating Profit Per Available Room (GOPPAR)
GOPPAR measures gross operating profit relative to the total number of available rooms, reflecting both revenue generation and operational efficiency.
FORMULA GOPPAR = Gross Operating Profit (GOP) / Total Available Rooms
Detailed Explanation
Unlike RevPAR, GOPPAR accounts for operational expenses (payroll, utilities, OTA commissions) and non-room revenue. This makes it a superior indicator of true hotel profitability. Shifting bookings from OTAs to direct channels raises GOPPAR by reducing commission expenses, even if RevPAR remains unchanged. Calculate your potential margins with our Hotel Profit Margin Calculator.
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