What Is GOPPAR?
GOPPAR, short for gross operating profit per available room, is a hotel's gross operating profit divided by the number of rooms it had available over a period. Because it takes operating costs out of revenue first, GOPPAR shows how much profit each available room produced.
Last updated: October 2026
How GOPPAR works: meaning and formula
GOPPAR is one of the hotel industry's key bottom-line metrics because it measures the relationship between hotel revenues and expenses (What is GOPPAR? How can it benefit your hotels? (CoStar / STR)).
The GOPPAR formula works in two steps: subtract operating expenses from gross revenue to get gross operating profit (GOP), then divide GOP by the total number of available rooms. Revenue counts from every part of the hotel, such as restaurants and bars as well as rooms, and expenses include labor and food and beverage costs (Hotel 101: What Is GOPPAR and Why Does It Matter? (HotStats)).
Gross operating profit, as STR benchmarks it, is total revenue minus departmental expenses (rooms, food and beverage, and other operated departments) and undistributed expenses (administrative and general, information and telecommunication systems, sales and marketing, utilities, and property operations and maintenance) (What is GOPPAR? How can it benefit your hotels? (CoStar / STR)). The Uniform System of Accounts for the Lodging Industry (USALI) is the global authoritative guidance for reporting revenues and expenses on hotel operating statements, and its 12th Revised Edition took effect on 1 January 2026 (The USALI 12th Revised Edition, An Expert Overview of the Updates (HFTP)).
Take a 100-room hotel. Over a year it has 36,500 available rooms (100 rooms × 365 days). If it earns US$6 million of total revenue, including rooms and food and beverage, and spends US$2.5 million on expenses such as supplies and salaries, its GOP is US$3.5 million and its GOPPAR is US$3.5 million ÷ 36,500, or about US$96.
Chatham Lodging Trust, a listed hotel REIT, calculates gross operating profit in its own results as Hotel EBITDA plus property taxes, ground rent and insurance (Chatham Lodging Announces First Quarter 2026 Results). Across all the hotels it owned, it produced about US$27 million of GOP in both Q1 2026 and Q1 2025, and its GOP margin rose to 40% from 39% (Chatham Lodging Announces First Quarter 2026 Results).
Why GOPPAR matters for hotel distribution
A hotel can outperform its competitors or market on occupancy, ADR and RevPAR while higher expenses in some areas put pressure on its bottom line, and GOPPAR is the metric that shows it (What is GOPPAR? How can it benefit your hotels? (CoStar / STR)).
GOP or GOPPAR works with TRevPAR to give flow-through, the percentage of incremental revenue that turns into incremental profit (What is GOPPAR? How can it benefit your hotels? (CoStar / STR)). That is the test for a distribution choice. Revenue from a new channel or a higher rate raises TRevPAR straight away, but it only lifts GOPPAR by what is left once the costs of winning and serving those bookings come out. Judging channels on profit per available room, not on revenue alone, shows which ones actually pay.
GOPPAR compared with other hotel metrics
| Metric | What it measures | Counts operating costs? |
|---|---|---|
| GOPPAR | Gross operating profit per available room | Yes: departmental and undistributed expenses |
| RevPAR | Revenue from selling rooms, per available room | No |
| TRevPAR | Total revenue per available room | No |
| GOP margin | Gross operating profit expressed as a margin (Chatham Lodging Trust: 40% in Q1 2026) | Yes, the same costs as GOP |
| EBITDA PAR | Earnings before interest, tax, depreciation and amortization, per available room | Yes, including cost lines taken after GOP |
U.S. hotels in STR's monthly P&L sample show how the lines step down: in 2024, TRevPAR was US$209.67 (up 7.2%), GOPPAR US$73.60 (up 3.2%) and EBITDA PAR US$51.88 (up 2.5%), while labor costs per available room rose 11.2% to US$72.44 (U.S. hotel profits grew in 2024 but were limited by inflation and labor costs (CoStar)). U.S. hotel GOPPAR is forecast to rise 4% in 2026 and another 1% in 2027, with expenses increasing by more than the rate of inflation in both years (CoStar, Tourism Economics upgrade U.S. hotel growth forecast (CoStar)).
Frequently asked questions
What is GOPPAR in hotels?
How do you calculate GOPPAR?
What is the formula used to calculate GOPPAR?
Does GOPPAR work for vacation rentals?
Related terms
See all termsWhere Jetstream fits
GOPPAR is earned booking by booking across every channel a property sells through, from its own website to OTAs and rental platforms. Each of those channels needs the right rooms, rates and availability, kept current as prices change. Jetstream builds an AI channel manager that connects a property's systems to the channels where guests book and keeps inventory accurate on each one, managed from one place.