Tourism Economics
What Is GOPPAR and How Is It Different From RevPAR?
GOPPAR looks beyond room revenue to measure the gross operating profit a hotel generates from its available rooms after accounting for the everyday costs of running the property.
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The Quick Answer
GOPPAR, or gross operating profit per available room, measures how much operating profit a hotel produces for each room it had available.
Unlike RevPAR, which focuses on room revenue, GOPPAR incorporates revenue from across the hotel and subtracts operating expenses. This makes it a broader measure of operational profitability, although it is not the same as final net profit.
How GOPPAR Measures Hotel Operating Profit
GOPPAR stands for gross operating profit per available room. It measures how much gross operating profit a hotel generates relative to the rooms it had available during a particular period. The metric helps connect the hotel’s revenue performance with the cost of operating the property.
The calculation begins with gross operating profit. A hotel subtracts its operating expenses from the revenue generated across the property, then divides the result by its available room-nights. If a 100-room hotel produces $10,000 in gross operating profit during one night, its GOPPAR is $100.
Operating revenue can extend beyond guest rooms to include food and beverage, parking, meetings, spa services and other departments. Operating expenses can include labor, utilities, maintenance, supplies and the departmental costs required to deliver those services. The exact accounting treatment can vary, so comparisons are most meaningful when properties use consistent reporting standards.
GOPPAR differs from RevPAR because RevPAR measures room revenue rather than profit. A hotel can raise its room rates, occupancy and RevPAR while experiencing a much smaller improvement in GOPPAR if wages, utilities, booking commissions or other expenses increase at the same time. The American Hotel & Lodging Association’s 2026 industry report illustrates this distinction: rising operating expenses kept hotel GOPPAR at roughly 90% of its 2019 level even as other industry measures recovered.
GOPPAR therefore provides a broader view of operational health, but it still does not equal final net profit. Costs such as debt service, taxes, depreciation and certain ownership expenses may fall outside gross operating profit. Like ADR, occupancy and RevPAR, GOPPAR is most useful when its definition, time period and comparison set are clear.
Tourism Economics in Practice
Imagine This…
A 100-room hotel generates $20,000 from rooms, dining, parking and other services during one night. Operating the property costs $12,000, leaving $8,000 in gross operating profit. Dividing that profit by 100 available rooms produces GOPPAR of $80—even if some rooms remained empty.
The Formula
How to Calculate GOPPAR
GOPPAR = Gross Operating Profit ÷ Available Rooms
$8,000 in gross operating profit ÷ 100 available rooms = $80 GOPPAR
What Shapes Profit?
Why GOPPAR Rises and Falls
Room Revenue
Rates and occupancy affect how much revenue the rooms department produces.
Other Departments
Restaurants, parking, spas and events can add revenue beyond room sales.
Labor Costs
Staffing levels, wages and benefits form a major part of hotel operating expenses.
Operating Efficiency
Utilities, maintenance, supplies and distribution costs determine how much revenue remains.
Follow the Connections
More Revenue Does Not Always Mean More Profit
A hotel may increase revenue by filling more rooms, extending restaurant hours or adding amenities. But those decisions can also increase housekeeping, food, labor, utility and maintenance expenses. GOPPAR helps reveal how much of the additional revenue remains after everyday operating costs.
A Useful Distinction
GOPPAR vs. RevPAR
RevPAR
Room Revenue
Measures room revenue relative to available rooms. It does not subtract operating expenses.
GOPPAR
Operating Profit
Measures gross operating profit after considering revenue and operating expenses across the hotel.
Essential Points
Key Takeaways
GOPPAR means gross operating profit per available room.
It incorporates hotel revenue and the operating expenses required to generate it.
RevPAR measures room-revenue performance, while GOPPAR focuses on operating profitability.
GOPPAR is broader than RevPAR but still does not represent final net profit.
Frequently Asked Questions
GOPPAR FAQ
What does GOPPAR stand for?
GOPPAR stands for gross operating profit per available room.
How is GOPPAR calculated?
Divide a hotel’s gross operating profit by the number of available room-nights during the same reporting period.
What is the difference between GOPPAR and RevPAR?
RevPAR measures room revenue per available room. GOPPAR considers broader hotel revenue and subtracts operating expenses before dividing the remaining profit by available rooms.
Does GOPPAR include restaurant revenue?
GOPPAR can include revenue and operating expenses from hotel departments such as restaurants, bars, parking, spas and meetings, depending on the reporting framework used.
Is GOPPAR the same as net profit?
No. GOPPAR focuses on gross operating profit. Debt, taxes, depreciation and certain ownership expenses may not be included.
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