All hotel tools Free hotel calculator

GOPPAR calculator

Work out your hotel's gross operating profit per available room: how much profit each room-night you had available actually earned. Enter your GOP and available room-nights, or break it down into revenue, expenses, rooms and days. The result updates as you type.

Total revenue minus operating expenses for the period. Put a minus sign in front for a loss.

Sellable rooms × days in the period, e.g. 30 rooms × 30 days = 900.

Your GOPPAR

—

See all hotel tools

Use revenue excluding GST. The maths runs in your browser; ClearHost doesn't store your figures.

Definition

What is GOPPAR in hotels?

GOPPAR (gross operating profit per available room) shows how much operating profit a hotel makes for every room-night it had available. Revenue metrics such as RevPAR tell you what came in. GOPPAR tells you what was left after the costs of running the property.

It starts with GOP (gross operating profit): total revenue from every department, minus the expenses of operating the hotel. Dividing GOP by available room-nights puts that profit on a per-room basis, so you can compare months, seasons and properties of different sizes.

The GOPPAR formula

GOP = total revenue − operating expenses
GOPPAR = GOP ÷ available room-nights
GOP margin = GOP ÷ total revenue × 100

Total revenue covers all departments: rooms, F&B, spa, events and other income, excluding GST. Operating expenses are the costs of running the hotel day to day: payroll, utilities, OTA commissions, supplies, maintenance and marketing. Leave out rent, interest, tax and depreciation, which sit below GOP. Available room-nights are your sellable rooms × the days in the period.

A worked example

A 30-room hotel earns ₹23,50,800 in total revenue over a 30-day month and spends ₹14,00,000 on operating expenses. Its GOP is ₹23,50,800 − ₹14,00,000 = ₹9,50,800, a GOP margin of about 40.4%. With 30 × 30 = 900 available room-nights, GOPPAR is ₹9,50,800 ÷ 900 = ₹1,056.44.

Now say a slow month brings the same revenue but operating expenses rise to ₹25,00,000. GOP becomes −₹1,49,200 and GOPPAR falls to about −₹165.78. A negative GOPPAR means the hotel lost money on operations, whatever its occupancy looked like.

Why owners watch GOPPAR

RevPAR can rise while profit falls. Discounting through high-commission channels, overstaffing a quiet week or running the air-conditioning in empty rooms all add cost without showing up in revenue metrics. GOPPAR catches all of it, because it measures revenue and cost together. That's why owners, investors and lenders often ask for GOP and GOPPAR before anything else.

It also helps you judge decisions before you make them. A promotion that fills 40 extra room-nights only helps if the revenue it brings in is more than the commission, housekeeping, laundry and utilities those stays add. Run the numbers through GOPPAR and the answer is clear, instead of hidden inside a higher occupancy figure.

Raise your profit

6 ways to improve your GOPPAR

GOPPAR moves when revenue rises faster than cost, or cost falls faster than revenue. The best levers usually do a bit of both.

Shift bookings to direct

Every booking moved from an OTA to your own website saves the commission on it. That saving goes straight to GOP.

Staff to your forecast

Plan shifts around expected occupancy, not a fixed roster. Quiet weekdays and peak weekends need different team sizes.

Cut energy waste

Switch off lighting and air-conditioning in unsold rooms and empty floors. Utilities are one of the easiest costs to reduce without guests noticing.

Price by demand

Charging more on high-demand nights earns extra revenue with almost no extra cost, which lifts GOP faster than filling rooms at a discount.

Grow profitable extra revenue

Push the add-ons with healthy margins, such as room upgrades, packages and early check-in, rather than ones that cost nearly as much as they earn.

Review costs every month

Track each expense line against revenue every month. Rising supply, maintenance or marketing costs are easier to fix when you spot them early.

Related metrics

GOPPAR vs RevPAR vs TRevPAR

GOPPAR sits at the end of a chain of metrics. Each one adds something the previous one leaves out.

GOPPAR vs RevPAR

RevPAR divides room revenue by available room-nights. It ignores costs and every department except rooms. Two hotels with the same RevPAR can have very different GOPPAR if one pays far more in OTA commission or payroll. In the example above, RevPAR is ₹2,112 while GOPPAR is ₹1,056.44. Calculate your RevPAR.

GOPPAR vs TRevPAR

TRevPAR adds F&B, spa, events and other income to room revenue, still per available room-night. GOPPAR uses the same total revenue but subtracts operating expenses first. TRevPAR shows how much the whole property sells; GOPPAR shows how much of that it keeps. With the example figures, TRevPAR is ₹2,612. Calculate your TRevPAR.

GOPPAR vs GOP margin

GOP margin is GOP as a share of total revenue, so it shows efficiency: how many rupees of profit each ₹100 of revenue produces. GOPPAR shows profit per available room-night, so it also reflects how much you sold. Track both. A rising margin with a falling GOPPAR usually means you've cut costs but lost revenue.

GOPPAR questions

GOPPAR, answered

There's no single good GOPPAR: it depends on your location, category, cost base and season. A good GOPPAR is one that's growing against the same period last year and staying positive in your slower months.
The costs of running the hotel day to day: payroll, utilities, OTA commissions, supplies, maintenance and marketing. Rent, interest, tax and depreciation are left out, because they depend on how the property is owned and financed rather than how well it's run.
Yes. If operating expenses are higher than total revenue for the period, GOP is negative and so is GOPPAR. It's a clear signal that the hotel lost money on operations, even if occupancy and RevPAR looked healthy.
No. Use total revenue excluding GST. Tax is collected on behalf of the government, so including it would overstate revenue and make GOP look better than it is.
Dividing by available room-nights means empty rooms count against you, just as they do in RevPAR. It shows how much profit the whole property earned for its size, not just the rooms you happened to sell.
Monthly, once your accounts for the month are closed and all expenses are recorded. Compare each month with the same month last year so seasonal costs and demand don't distort the picture.

Keep more of every booking

ClearHost's commission-free booking engine turns your website into a direct channel, and its analytics show revenue by channel, so you can see where your margin is going.