What is the profit of the hotel?

"GOP" is the abbreviation of "Gross OperatingProfit", that is, operating gross profit, which is reflected in the income statement as the balance of income MINUS costs, labor costs, direct expenses of operating departments and indirect expenses of back-office departments.

Formula: GOP= total hotel operating income-total hotel operating expenditure.

The GOP rate is the profit rate, and the GOP rate =GOP/ total hotel revenue × 100%.

Using "GOP" to measure the general manager's operating performance really makes up for the shortage that domestic hotels used to measure their operating performance with net profit as the only indicator regardless of responsibility and hotel reality.

Measuring business performance by net profit index makes the data of hotel industry generally lack comparability and objectivity. In the domestic financial system, depreciation of fixed assets is charged as management expenses or operating expenses, interest is charged as financial expenses, and amortization of start-up expenses during hotel preparation is also charged as management expenses.

This makes the operator's performance greatly influenced by the hotel's financial structure, sources of funds and investment in fixed assets. Because hotel investment has the characteristics of long cycle and large investment, the general manager often hasn't decided or participated when investors build hotels, but after opening, if the operators are responsible for these expenses, there will be deviations.

Baidu encyclopedia -GOP