Hotel operating statement: departmental P&L to NOI
Departments, undistributed costs, GOP, fees, EBITDA.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: hotel operating statement: departmental p&l to noi.Updated 22 October 2026
Part of real estate models, with the models, labs and guides around it.
What it does
The hotel’s income statement in the order the industry’s uniform system of accounts sets it. Each operated department (rooms, food and beverage, the rest) shows its revenue less its own costs; the undistributed costs of running the building (administration, sales and marketing, maintenance, utilities) come next, and what remains is gross operating profit, the operator’s scorecard. The operator’s base fee on revenue and incentive fee on profit above the owner’s priority, then property tax and insurance, give EBITDA; less the FF&E reserve, NOI.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 38–44: Rooms expense, % of rooms revenue, Food and beverage expense, % of F&B revenue, Other operated departments expense, % of their revenue, Administrative and general, per available room, Year 1…
- Assumptions, rows 47–51: Base management fee, % of total revenue, Incentive management fee, % of adjusted GOP above the owner’s priority, Owner’s priority, % of purchase price and PIP, Property tax, Year 1…
- Operating Statement, rows 6–10: Rooms, Food and beverage, Other operated departments, Rentals and other income…
- Operating Statement, rows 13–18: Rooms, Food and beverage, Other operated departments, Total departmental expenses…
- Operating Statement, rows 21–26: Administrative and general, Sales and marketing, Property operations and maintenance, Utilities…
- Operating Statement, rows 29–31: Gross operating profit (GOP), GOP margin, GOP per available room night (GOPPAR)
- Operating Statement, rows 34–38: Owner’s priority, Base management fee, Adjusted GOP, Incentive management fee…
- Operating Statement, rows 41–43: Property tax, Insurance, Total fixed charges
- Operating Statement, rows 46–47: EBITDA, EBITDA margin
- Operating Statement, rows 56–60: Net operating income (NOI), NOI margin, NOI per key, GOP margin, first stabilised year…
What a reviewer looks for
- Every cost a percentage of revenue, which hides operating leverage.
- The incentive fee on all of GOP rather than above the owner’s priority.
- Management fees and fixed charges inside GOP.
Learn it, then build it
Vocabulary: Gross Operating Profit (GOP), Net Operating Income (NOI).