Work out gross operating profit per room instantly with clear inputs, formula shown and shareable results.
GOPPAR is gross operating profit divided by available room nights, and it is the measure owners care about because it captures cost control as well as revenue. A hotel can lead its market on RevPAR and still lag on GOPPAR if its cost base is heavier.
GOPPAR
GOPPAR = Gross operating profit / (Rooms available x Nights)
GOP margin
GOP margin % = Gross operating profit / Total revenue x 100
35-45% for full-service hotels and 45-55% for limited-service, where food and beverage cost does not dilute the margin.
Because GOPPAR normalises for hotel size, making a 90-room and a 400-room property directly comparable.