What is the meaning / definition of in the hospitality industry?

NOP stands for , also known as NOI (Net Operating Income). It is a KPI / calculation of net operating income / profit after subtracting all of the operating expenses from the revenues generated by a hotel.

Basically speaking, net operating profit refers to the amount of money that a hotel has earned after the cost of distribution and operating expenses have been deducted. This is used to see whether a hotel is making more than it spends or is operating at a loss.

It is used to examine the cash flow of an investment before the effects of taxes and financing costs are considered. This performance indicator is often a crucial figure for investors as part of their estimation of the value of the property.

How do you calculate NOP?

NOP Formula: Revenue generated – Operating Expences

See Also:

  • GOP
  • GOPPAR
  • PROFPAR

Synonyms

  • NOP
  • Net Operating Profit

Categories:

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