Hospitality Finance & Asset Management Lab

Hotel GOPPAR & TrevPAR Calculator

Model Hotel GOPPAR, TrevPAR, RevPAR, gross operating profit flow-through %, and lodging asset management economics.

Hotel Property Presets

Load calibrated lodging benchmarks.

Step 1: Rooms Inventory, Occupancy %, ADR, F&B POR, Departmental Costs & Undistributed Overhead

Hotel Operating & Expense Parameters

🏨 Rooms Inventory & Revenue Drivers

📉 Departmental Costs & Overhead Burden

GOPPAR Key Metrics

Hotel GOPPAR
$128.80
40.7% GOP Margin (RevPAR: $201.60 @ 72% Occ)
Hotel TrevPAR
$316.80
Total RevPAR (Rooms $201.60 + F&B/Other $115.20)
Annual Hotel GOP
$11.75M/yr
Total Top-Line Revenue: $28.91M/yr across 250 rooms
Rate Flow-Through
78.0% Flow
Rooms Rate Flow-Through

Lodging Asset Matrix: ADR ($) vs. Occupancy Rate (%)

Simulates Hotel GOPPAR ($/room/day) and Total Annual Gross Operating Profit ($M/yr) across average daily rates and occupancy levels.

ADR Tier 55% Occupancy 65% Occupancy 72% Occupancy 80% Occupancy 88% Occupancy

Hotel Asset Management Principles

Understanding Hotel GOPPAR & TrevPAR

Key financial metrics used by hotel owners, asset managers, and REITs:

  • The RevPAR Limitation: RevPAR tracks only room sales. In full-service hotels where F&B and banqueting make up 40%+ of revenue, TrevPAR captures total guest spending power.
  • Why GOPPAR Rules Asset Value: Commercial hotel real estate valuations and cap rates are derived from Gross Operating Profit (GOP), not top-line revenue.
  • Flow-Through Efficiency: Incremental rate increases flow through at 70%-80% to GOP, whereas incremental occupancy increases flow through at only 40%-55% due to variable housekeeping and linen costs.
  • Undistributed Overhead Controls: Administrative & General (A&G), Sales & Marketing, and Utilities represent fixed daily burdens that require strict PAR monitoring.

Evaluate restaurant revenue yield in the RevPASH Lab.

Mathematical Formulation

GOPPAR & TrevPAR equations

RevPAR = Occupancy_% × ADR

TrevPAR = ( Total_Room_Revenue + Total_Non_Room_Revenue ) / Total_Available_Rooms

Gross_Operating_Profit = Total_Dept_Profit - Undistributed_Operating_Expenses

GOPPAR = Gross_Operating_Profit / Total_Available_Rooms

GOP_Margin_% = ( GOPPAR / TrevPAR ) × 100

Flow_Through_% = ( Δ_GOP / Δ_Total_Revenue ) × 100

Model hotel cap rates in the Commercial Real Estate Lab.

FAQ

Hotel GOPPAR & TrevPAR questions

What is GOPPAR in hotel asset management?

GOPPAR stands for Gross Operating Profit Per Available Room. Unlike RevPAR which only reflects top-line room revenue, GOPPAR measures true bottom-line operational profitability after deducting departmental operating costs and undistributed overhead (A&G, sales, maintenance, utilities).

What is TrevPAR and how does it differ from RevPAR?

TrevPAR (Total Revenue Per Available Room) accounts for all revenue generated by the hotel property, including rooms, food & beverage, banquets, spa, parking, and resort fees, divided by total available rooms.

What is Flow-Through in hospitality finance?

Flow-Through measures the percentage of incremental top-line revenue that converts into Gross Operating Profit (GOP). A healthy hotel typically achieves 50% to 70% flow-through on rate-driven revenue increases.

Why is GOPPAR preferred over RevPAR by hotel owners?

Hotel owners and REITs prioritize GOPPAR because high RevPAR driven purely by discounts or high-cost occupancy does not guarantee cash flow. GOPPAR reveals the net operating margin available to service debt and fund capital reserves.

Can I export the hotel GOPPAR audit to CSV?

Yes. You can export complete TrevPAR, RevPAR, departmental margin breakdowns, GOPPAR valuations, and 6x5 sensitivity tables as a UTF-8 CSV spreadsheet with formula defense.

Continue Exploring Hospitality Finance Tools

Explore our Hospitality & Food Service Hub, analyze table turnover in the Restaurant RevPASH Lab, calculate food costs in the Prime Cost Lab, optimize revenue management in the Hotel Revenue Management Lab, or calculate property valuation in the Commercial Real Estate Lab.