GOP Hotel Abbreviation

Gross Operating Profit

"GOP" in the context of a hotel stands for "Gross Operating Profit." This is a fundamental financial metric used in the hospitality industry to assess a hotel's profitability from its core operations. It represents the revenue remaining after all direct operating expenses have been deducted from the total revenue generated by the hotel. Importantly, GOP excludes non-operating expenses such as taxes, interest payments on debt, depreciation of assets, and amortization.

GOP is a crucial Key Performance Indicator (KPI) because it provides a clear picture of how efficiently and effectively a hotel's management is running its day-to-day operations and controlling costs while maximizing revenue. It consolidates income from all revenue streams (rooms, food and beverage, spa, parking, etc.) and subtracts all costs directly associated with running those departments (payroll, utilities, supplies, marketing, maintenance). A strong GOP indicates healthy operational management and forms the basis for evaluating a hotel's financial health and its ability to generate cash flow from its primary business activities before considering broader financial obligations.