Gross Operating Profit (GOP)

Gross Operating Profit (GOP) is a hotel financial performance indicator that measures operating profitability after deducting departmental expenses and undistributed operating expenses from total operating revenue. It reflects how effectively a hotel generates profit from its core operations before management fees and non-operating items. GOP helps hotel owners, operators, and management teams evaluate cost efficiency, monitor profitability, and compare financial results.

Formula: GOP = Total Operating Revenue − Departmental Expenses − Undistributed Operating Expenses