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What is GOPPAR?
GOPPAR stands for Gross Operating Profit Per Available Room. It measures the profit a hotel generates per available room after all operating costs — not the gross room revenue, but what actually remains once distribution costs, labour, F&B, and other expenses are accounted for.
How to calculate GOPPAR
GOPPAR = Gross Operating Profit ÷ Total Rooms Available. Gross Operating Profit is total hotel revenue minus total operating costs, before fixed charges such as debt service, depreciation, and management fees.
Why GOPPAR matters more than RevPAR
RevPAR tells you how much revenue a hotel generated per room. GOPPAR tells you how much of that revenue the hotel actually kept.
The gap between the two is where hotels lose money without knowing it. Distribution costs have grown consistently as a share of room revenue. OTA commissions, GDS fees, and the rising cost of direct channel investment all reduce net revenue below the RevPAR line. Labour costs are rising. F&B margins are under pressure. RevPAR does not capture any of this.
A hotel running at $150 RevPAR with a high OTA mix and rising labour costs may be less commercially healthy than a hotel at $130 RevPAR with a strong direct channel and tight cost controls. GOPPAR makes that visible. RevPAR does not.
Who uses GOPPAR
GOPPAR is the primary lens for owners, asset managers, and CFOs — anyone whose accountability is the financial outcome of the hotel rather than the revenue management decisions that produce it. It is the metric that connects commercial strategy to the bottom line, making it essential for ownership reporting, investor communication, and management company accountability.
GOPPAR and the Revenue & Profit Operating System
Duetto's partnership with HotStats brings GOPPAR benchmarking directly into the revenue strategy workflow. HotStats provides verified, department-level profit benchmarking against a peer set — giving revenue and finance teams the ability to see not just whether RevPAR improved, but whether the commercial decisions that drove it actually improved profitability relative to the competitive set. That is the closed loop the industry has been missing.