ADR vs RevPAR vs GOPPAR: The hotel KPIs explained
ADR, RevPAR and GOPPAR are the three numbers every hotel P&L runs on. Here's what each one measures, how they relate, and which to optimise.
Luska Research
Pricing & Yield Team
ADR, RevPAR and GOPPAR are the three letters that show up in every hotel P&L review. They look similar, they sound similar, and they're often used interchangeably — even though each one tells a completely different story about how the hotel is performing.
Quick definitions
- ADR — Average Daily Rate. Room revenue ÷ rooms sold. The price you charged the guests who actually showed up.
- RevPAR — Revenue Per Available Room. Room revenue ÷ rooms available. The price you charged across all your inventory, sold or not.
- GOPPAR — Gross Operating Profit Per Available Room. Gross operating profit ÷ rooms available. What you actually kept after running the place.
Side-by-side comparison
| Metric | Formula | Best for | Blind spot |
|---|---|---|---|
| ADR | Room revenue ÷ rooms sold | Rate strategy, brand positioning | Ignores empty rooms entirely |
| RevPAR | ADR × occupancy % | Day-to-day yield decisions | Ignores cost & ancillaries |
| GOPPAR | Gross operating profit ÷ rooms available | Owner / asset-manager decisions | Lags by weeks / months |
A worked example
A 200-room hotel runs a busy month: 5,000 room-nights sold out of 6,000 available. Room revenue is €900,000. Operating costs come in at €560,000, so gross operating profit is €340,000.
- ADR = €900,000 ÷ 5,000 = €180
- Occupancy = 5,000 ÷ 6,000 = 83.3%
- RevPAR = €180 × 0.833 = €150
- GOPPAR = €340,000 ÷ 6,000 = €56.67
The story those four numbers tell
Which one should you optimise?
It depends on who's asking:
- Revenue manager: RevPAR. It's the daily scoreboard.
- Sales & marketing: ADR by segment. Are corporate, leisure and group all priced where they should be?
- General manager / owner: GOPPAR. RevPAR can rise while GOPPAR falls — typically when you chase occupancy through high-commission OTA channels.
The relationship in plain English
Think of it as a ladder. ADR is rung one — what you charge. Multiplied by how full you are, you get RevPAR (rung two) — what you actually earn per available room. Subtract what it costs to run the place, and you reach GOPPAR (rung three) — what's left over.
You can't have a healthy GOPPAR without a healthy RevPAR, and you can't have a healthy RevPAR without a sensible ADR. They build on each other.
See how Luska tracks all three for you
Daily RevPAR, channel-adjusted GOPPAR, and ADR by segment — visualised in one dashboard with autopilot price recommendations.
Tour the hotel dashboardRead next
New to all of this? Start with the RevPAR explainer and then read the full Hotel Revenue Management Playbook.