GOPPAR Calculator
See how much profit each available room really makes, plus GOP margin, TRevPAR and RevPAR.
Why GOPPAR matters more than RevPAR
RevPAR shows how well you sell rooms. GOPPAR (gross operating profit per available room) shows how much of that money you keep after running the hotel. Two hotels can have the same RevPAR, but the one with lower OTA commission, tighter staffing and better energy control will have a much higher GOPPAR. Owners, lenders and buyers increasingly look at GOPPAR because profit, not just revenue, pays the EMI.
Worked example
A 40-room hotel in a 30-day month has 1,200 available room nights. Total revenue is ₹36,00,000 (rooms ₹25,20,000, food and other ₹10,80,000) and operating expenses are ₹23,40,000.
- GOP = ₹12,60,000 and GOP margin = 35%
- GOPPAR = ₹12,60,000 ÷ 1,200 = ₹1,050
- TRevPAR = ₹36,00,000 ÷ 1,200 = ₹3,000
- RevPAR = ₹25,20,000 ÷ 1,200 = ₹2,100
Reading your GOPPAR
Compare GOPPAR month by month and with the same month last year rather than with other hotels, because cost structures differ a lot between a leased city hotel and an owner-run resort. A rising RevPAR with a falling GOPPAR is a warning sign: you are selling more, but costs such as commission, overtime or power are growing faster than revenue. A rising GOP margin at the same occupancy usually means better pricing or tighter cost control.
What to include in operating expenses
- Salaries, wages, staff food and accommodation
- Food and beverage cost, guest supplies, laundry and linen
- Electricity, diesel, water, gas and internet
- OTA commission, payment charges, marketing and software
- Repairs and maintenance, housekeeping chemicals, admin costs
Keep rent or lease, loan interest, depreciation and income tax out of GOP. They come below the GOP line and are judged separately when you plan an investment with the break-even occupancy calculator.
How to raise GOPPAR
- Shift bookings from high-commission channels to direct bookings.
- Match staff rosters and power use to occupancy, especially on low days.
- Grow profitable add-ons such as breakfast, packages and events.
- Protect ADR rather than discounting heavily — check both with the RevPAR calculator.
Frequently asked questions
What is the difference between GOPPAR and RevPAR?
RevPAR is room revenue per available room. GOPPAR is gross operating profit from all departments per available room, so it includes costs and non-room income.
Does GOP include rent and loan interest?
No. Gross operating profit is calculated before rent or lease, loan interest, depreciation and income tax. Those are fixed charges deducted after GOP.
What is TRevPAR?
TRevPAR is total revenue per available room. It adds food and beverage, banquets, spa and other income to room revenue and divides by available room nights.
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