Net Operating Profit

What is the definition of NOP in the hotel industry?

NOP abbreviates for Net Operating Profit, also well-known as NOI (Net Operating Income). It is a KPI / computation of net operating income / profit after deducting all of the operating  fixed cost from the revenues produced by a hotel.

Essentially speaking, net operating profit refers to the quantity of money that a hotel has made after the cost of circulation and operating expenses have been removed. This is used to see whether a hotel is making more than it spends or is in service at a loss.

It is used to learn the cash flow of an investment before the effects of taxes and financing costs are measured. This performance marker is often a vital shape for investors as part of their opinion of the worth of the property.