GOP (Gross Operating Profit)

Definition

Total operating revenue minus all operating expenses — departmental costs and undistributed operating costs — before rent, interest, depreciation and owner-level items. GOP is the hotel’s operating profit: what the operation actually keeps from everything it sells.

What it tells you

Whether revenue growth is turning into profit. Two months with identical revenue can end with very different GOP if one filled with commission-heavy, cost-intensive business. Leaders and owners judge the operation on GOP (and its per-room form, GOPPAR) because revenue is a means, not the result.

How to track it

From the monthly P&L: sum all operating revenue (rooms, F&B, spa, other), subtract distribution costs, departmental variable costs and undistributed fixed operating costs. Watch the GOP margin (GOP ÷ total revenue) alongside the absolute number, and divide by available rooms for GOPPAR to compare across periods and properties.

Where it fits

GOP is the bridge between the revenue metrics (RevPAR, TRevPAR) and the owner’s return. The Academy introduces the full-guest-value view in RevPAR vs. TRevPAR; the leadership track walks GMs through the revenue-to-GOP chain line by line.