GOPPAR, or Gross Operating Profit per Available Room, is a key performance indicator used in the hotel industry to measure the financial health and profitability of a hotel. It provides insights into the hotel's ability to generate revenue and control costs.

What is the GOPPAR (Gross Operating Profit per Available Room)?

Gross Operating Profit per Available Room (GOPPAR) is a key performance indicator used in the hotel industry to measure the financial performance of a hotel. It is calculated by dividing the gross operating profit of a hotel by the number of available rooms. GOPPAR provides a measure of how much profit a hotel is generating for each room that is available for sale.

GOPPAR is an important metric for hotel owners and operators as it helps them to assess the profitability of their hotel. A high GOPPAR indicates that a hotel is generating a healthy profit, while a low GOPPAR indicates that a hotel is struggling financially.

What Affects GOPPAR (Gross Operating Profit per Available Room)?

There are a number of factors that can affect GOPPAR, including:

• Hotel Occupancy Rate: The higher the occupancy rate, the higher the GOPPAR.
• Average Daily Rate (ADR): The higher the ADR, the higher the GOPPAR.
• Hotel Expenses: The higher the hotel expenses, the lower the GOPPAR.

How to Calculate GOPPAR (Gross Operating Profit per Available Room)?

To calculate the GOPPAR, you will need the following information:

• Gross Operating Profit: This is the total revenue from room sales, food and beverage sales, and other sources, minus the cost of goods sold and operating expenses.
• Number of Available Rooms: This is the total number of rooms that are available for sale, regardless of whether or not they are occupied.

Once you have this information, you can calculate the GOPPAR by dividing the gross operating profit by the number of available rooms.

For example, if a hotel has a gross operating profit of $100,000 and 100 available rooms, the GOPPAR would be $1,000.

FAQs About GOPPAR (Gross Operating Profit Per Available Room)

Q: What is the GOPPAR Formula?

A: The GOPPAR formula is calculated by dividing the gross operating profit of a hotel by the total number of available rooms. The formula is: GOPPAR = Gross Operating Profit / Number of Available Rooms.

Q: What is Good GOPPAR for Hotels?

A: A "good" GOPPAR varies widely depending on factors such as location, hotel type, and market conditions. Generally, a higher GOPPAR indicates better financial health and profitability of a hotel. Benchmarking against similar hotels in the same market can provide a more specific target.

Q: What is an Example of GOPPAR?

A: For example, if a hotel has a gross operating profit of $50,000 in a month and has 100 rooms available, the GOPPAR would be $500. This means the hotel earns an average gross profit of $500 per available room during that month.