GOPPAR (Gross Operating Profit Per Available Room)
GOPPAR (Gross Operating Profit Per Available Room) measures the gross operating profit generated per available room-night, calculated by dividing total revenue minus all operating expenses by the number of available nights in a period. Where RevPAR reveals what a property earns per night, GOPPAR reveals what it keeps — making it the most complete single metric for evaluating short-term rental profitability and comparing operational efficiency across properties.
Key Takeaways
- GOPPAR = Gross Operating Profit ÷ Total Available Room-Nights
- Goes beyond RevPAR by netting out all operating expenses before measuring per-night output
- Two properties with identical RevPAR can have very different GOPPAR when their cost structures differ
- Excludes debt service, income taxes, and depreciation — isolating operational performance from financing decisions
- The definitive benchmark for comparing profitability across properties, markets, or management models
How to Calculate GOPPAR
Formula:
GOPPAR = Gross Operating Profit ÷ Total Available Room-Nights
Where: Gross Operating Profit (GOP) = Total Revenue − Operating Expenses
Example — monthly calculation:
| 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 gap between the two figures represents operating costs per available night — the hidden cost layer that RevPAR cannot see.
GOPPAR by Market: Real STR Data
GOPPAR differs dramatically across markets because operating costs track local ADR, management rates, and labor costs. Using AirROI's trailing-12-month revenue data with a 55% GOP margin applied — a standard industry benchmark for a professionally managed STR — implied GOPPAR across six US markets shows a clear spread driven by both revenue and cost structure.
In AirROI's analysis of 35,301 active listings across San Diego, Gatlinburg, Scottsdale, Nashville, Miami, and Denver, median implied GOPPAR ranges from $41.50 per available night in Denver to $80.60 in San Diego:
| Market | Median Annual Revenue | Implied GOPPAR/night |
|---|---|---|
| San Diego, CA | $53,472 | $80.60 |
| Gatlinburg, TN | $50,438 | $76.00 |
| Scottsdale, AZ | $49,153 | $74.10 |
| Nashville, TN | $44,039 | $66.40 |
| Miami, FL | $34,738 | $52.30 |
| Denver, CO | $27,540 | $41.50 |
RevPAR tells you which market earns the most per night. GOPPAR tells you which market profits the most — and the ranking is rarely identical once operating costs enter the picture.
These are city-median figures across all active listings; a well-operated property purchased at a competitive price will exceed the median. The value is in the relative spread: Gatlinburg and Scottsdale pull ahead of Nashville on GOPPAR despite Nashville's strong brand recognition, because resort markets attract leisure demand that supports higher ADR with relatively stable per-turnover costs. Markets with disciplined ADR management consistently compress the gap between RevPAR and GOPPAR.
GOPPAR vs. RevPAR: Which Metric Matters More?
| Metric | What It Measures | Includes Costs? | Best Used For |
|---|---|---|---|
| RevPAR | Revenue per available night | No | Market benchmarking, pricing optimization |
| GOPPAR | Profit per available night | Yes | Investment comparison, operational efficiency |
The two metrics answer different questions. RevPAR is the right lens when evaluating demand, ADR performance, and competitive positioning in a market. GOPPAR is the right lens when deciding which of two properties — or two management approaches — actually generates more wealth per available night of ownership.
A concrete example: Property A in an urban market posts RevPAR of $220 but carries $120 in operating costs per available night, yielding GOPPAR of $100. Property C in a vacation market posts RevPAR of $180 but only $60 in operating costs, yielding GOPPAR of $120. Property C is the better operating investment despite losing the RevPAR comparison by $40.
Why GOPPAR Matters for STR Investors
True profitability measurement. GOPPAR is the only top-line metric that captures both revenue performance and cost discipline simultaneously. Two properties with identical RevPAR have identical earning power — but wildly different economic outcomes if their expense structures diverge. GOPPAR surfaces that difference immediately.
Management model evaluation. Self-managed properties typically carry 10–15% lower management costs than full-service co-hosted arrangements. GOPPAR quantifies whether that cost savings outweighs the revenue lift a professional manager might deliver through better pricing, occupancy, and occupancy management.
Expense discipline. Tracking GOPPAR monthly alongside RevPAR reveals cost creep before it compounds. If RevPAR holds flat but GOPPAR declines, operating expenses are growing. That signal is invisible when looking at revenue metrics alone.
Portfolio benchmarking. Across a multi-property portfolio, GOPPAR normalizes for market differences in both revenue and cost levels — enabling a fair operational efficiency ranking regardless of whether properties sit in Denver or San Diego. According to research on professional STR operators, institutional managers specifically optimize for GOPPAR rather than RevPAR when allocating capital across markets.
How to Improve Your GOPPAR
Grow revenue without proportionally growing costs. Optimize ADR through dynamic pricing and demand-aware calendar management. Rate increases flow entirely to GOP if the incremental cost of a booking is zero. Our guide to data-driven dynamic pricing details the mechanics.
Reduce per-turnover costs by extending stays. Cleaning and changeover expenses are the largest variable cost for most STRs. Encouraging longer stays — through minimum-night policies and length-of-stay discounts — cuts the number of turnovers per month and directly expands GOP margin. Gatlinburg's median length of stay is just 3.4 nights, meaning operators there see the most leverage from this tactic.
Negotiate vendor rates as the portfolio scales. Cleaning, maintenance, and linen service unit costs fall predictably as volume increases. A host managing five properties in the same zip code can typically negotiate 15–25% lower per-clean rates than a single-property host.
Audit platform fees and booking mix. Airbnb's host service fee (typically 3%) applies to every booking. Direct bookings and platforms with lower commission structures reduce the fee drag on GOP. The full breakdown of Airbnb host charges quantifies the exact cost impact.
Frequently Asked Questions
GOPPAR = Gross Operating Profit ÷ Total Available Room-Nights. Gross Operating Profit equals total revenue minus all operating expenses. For example, a listing generating $6,200 in monthly revenue with $2,741 in operating expenses yields a GOP of $3,459, and with 30 available nights, a GOPPAR of $115.30 per night.
RevPAR measures revenue per available night and ignores costs entirely. GOPPAR deducts all operating expenses first, so it reflects actual profit per available night. A property with high RevPAR but heavy expense loads — urban luxury units with frequent turnovers, for example — can have a GOPPAR far below a simpler, lower-ADR property with lean operations.
GOPPAR varies widely by market and property type. Using AirROI trailing-12-month revenue data and a 55% GOP margin, implied GOPPAR ranges from roughly $42 per available night in Denver to $81 in San Diego across 35,301 active listings. Top-performing individual properties in high-ADR markets routinely exceed $120–$150 per night.
Hosts improve GOPPAR by growing revenue faster than costs — through ADR optimization, occupancy management, and dynamic pricing — while compressing per-turnover expenses by encouraging longer stays, negotiating vendor rates, and automating check-in and messaging. Each dollar cut from operating expenses flows directly to GOPPAR.