GOPPAR (Gross Operating Profit Per Available Room)
Key Takeaways
- GOPPAR = Gross Operating Profit / Total Available Room-Nights
- Goes beyond RevPAR by factoring in operating expenses
- Reveals true profitability per available night, not just revenue
- Excludes debt service (mortgage), income taxes, and depreciation
- The gold standard for comparing operational efficiency across properties
How to Calculate GOPPAR
Formula:
GOPPAR = Gross Operating Profit / Total Available Room-Nights
Where: Gross Operating Profit (GOP) = Total Revenue - Operating Expenses
Example:
Your listing's monthly performance:
| Line Item | Amount |
|---|---|
| Gross Revenue | $6,200 |
| Less: Platform fees (3%) | -$186 |
| Less: Cleaning costs | -$780 |
| Less: Property management (20%) | -$1,240 |
| Less: Utilities | -$220 |
| Less: Supplies & maintenance | -$175 |
| Less: Insurance | -$140 |
| Gross Operating Profit | $3,459 |
| Total Available Nights | 30 |
| GOPPAR | $115.30 |
Compare this to RevPAR ($6,200 / 30 = $206.67). The $91.37 difference represents operating costs per available night.
Why GOPPAR Matters for Airbnb Hosts
- True profitability view: Two properties with identical RevPAR can have very different GOPPAR values if one has higher operating costs. GOPPAR reveals which property is actually more profitable.
- Expense discipline: Tracking GOPPAR alongside RevPAR highlights when costs are growing faster than revenue, signaling the need for expense management.
- Property comparison: GOPPAR normalizes for both revenue differences and cost differences, making it the fairest way to compare properties in different markets or of different types.
- Investment decisions: GOPPAR provides a more reliable basis for projecting cash flow and returns than revenue metrics alone, helping investors make better acquisition and disposition decisions.
GOPPAR vs. RevPAR Comparison
| Scenario | RevPAR | Operating Expenses/Night | GOPPAR | Winner |
|---|---|---|---|---|
| Property A (urban luxury) | $220 | $120 | $100 | |
| Property B (suburban) | $130 | $55 | $75 | |
| Property C (vacation) | $180 | $60 | $120 | Best GOPPAR |
This example shows that Property A has the highest RevPAR but not the highest GOPPAR due to expensive urban operating costs. Property C delivers the best profitability per available night.
How to Improve Your GOPPAR
- Increase revenue without proportionally increasing costs by optimizing ADR through dynamic pricing and improving occupancy
- Reduce per-turnover costs by encouraging longer stays through length-of-stay discounts, which reduces cleaning and changeover expenses
- Negotiate vendor rates for cleaning, maintenance, and property management as your portfolio grows and you gain leverage
- Automate operations with smart locks, self-check-in, and automated messaging to reduce labor costs per booking
- Monitor GOPPAR monthly and set improvement targets that track both revenue growth and cost control, using benchmark data from comparable properties
Frequently Asked Questions
GOPPAR stands for Gross Operating Profit Per Available Room. It measures the operating profit generated per available room-night after deducting all operating expenses (but before debt service, taxes, and depreciation). It is a more complete profitability metric than RevPAR because it accounts for costs.
GOPPAR = Gross Operating Profit / Total Available Room-Nights. Gross Operating Profit is total revenue minus all operating expenses (cleaning, maintenance, utilities, management fees, platform fees, supplies). For example, $4,200 GOP with 30 available nights = $140 GOPPAR.
RevPAR only measures revenue per available night and ignores costs. GOPPAR deducts operating expenses, so it reflects actual profitability per available night. A property with high RevPAR but high expenses could have a low GOPPAR, revealing that revenue alone does not tell the whole story.