Gross Operating Profit (GOP)

A hotel’s profit after the costs of its operated departments (rooms, food and beverage, the rest) and the undistributed costs of running the building (administration, sales and marketing, maintenance, utilities), but before management fees, property tax, insurance and the FF&E reserve. It is the operator’s scorecard, and because many undistributed costs are fixed per room, GOP margin rises and falls faster than revenue.