Gross Operating Profit Per Available Room (GOPPAR)
GOPPAR measures gross operating profit relative to total available rooms, reflecting overall top-line revenue performance minus departmental and undistributed operating costs.
Why It Matters for Independent Operators
Unlike RevPAR, GOPPAR accounts for non-room revenue and subtracts variable operating expenses (housekeeping consumables, linen laundry, OTA commissions, front desk payroll). It indicates property-level operational profitability.
Practical Scenario & Calculation
[Illustrative Scenario] A 50-room hotel generates ₹45,00,000 in monthly revenue across rooms and dining. Total operating expenses equal ₹27,00,000, leaving ₹18,00,000 GOP over a 30-day month (1,500 room nights). GOPPAR = ₹18,00,000 / 1,500 = ₹1,200.
How Operators Can Apply This Concept
Prioritise direct-booking acquisition for repeat guests. Shifting bookings from 20% commission OTAs to direct channels increases GOPPAR even if ADR and occupancy stay flat.
Common Misunderstanding to Avoid
GOPPAR is not net profit; it excludes capital expenditures, debt service, property rent, depreciation, and income taxes.
Hotel Profit Margin Calculator
Calculate room operating contribution, ancillary contribution and entered-overhead surplus. This simplified model is not audited net profit or a full accounting statement.
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