What is Gross Operating Profit per Available Room (GOPPAR)?
Gross Operating Profit per Available Room (GOPAR) is a metric used to measure the financial health of a hotel. It is calculated by dividing the total gross operating profit for the establishment by the total number of available rooms.
GOPAR = Total gross operating profit / Total number of available rooms
Ultimately, GOPAR is a measurement of how profitable a hotel is. It can be used to compare hotels between different locations, chains, or types.
What Is the Ideal GOPAR for a Hotel?
The ideal GOPAR depends on the hotel's location, as well as its business model and size. For example, some hotels have more expensive rooms than others; in this case, a higher GOPAR is actually desirable because it means you're getting more revenue per room than other hotels in your area with lower GOPARs.
As a general rule, if your GOPAR is greater than 0.50, you are considered efficient in terms of generating revenue from each room you have available for rent.
Why Is GOPAR Important?
GOPAR is an important metric for hotels because it is one of the best ways to measure how much money you are making on a room-by-room basis.
If you do not have a good idea of your GOPAR, you cannot know whether or not your hotel is running at maximum efficiency. If you are not making enough money per available room, it means that either there are too many rooms in your hotel or that they are not being utilized correctly — either way, it is not good news for your bottom line.
Knowing how much money is coming in from each guest allows you to make informed decisions about what kind of services and amenities your guests need so that they keep coming back.
How Do I Raise My Hotel’s GOPAR?
Is your hotel's GOPAR not where you want it to be?
We have a few tips that can help increase your hotel's GOPAR and make your business more profitable.
First, check your occupancy rate. If it is low, then you might need to consider lowering the price of your rooms in order to attract more customers. If you are already charging what you think is the right price, then it might be time to start thinking about how much money you are spending on marketing efforts and how you can optimize those efforts for better results.
Next, look at your food and beverage costs — are they too high? If so, add some new menu items or drinks that are sure-fire crowd pleasers (e.g., fresh juice blends). This will help draw in more customers who are looking for a good deal on food and drinks at their hotel stay.
Finally, make sure that staff members are friendly when guests arrive at the front desk or restaurant; this is an easy way to improve customer satisfaction without spending any extra money!