Hotel GOP Margin Calculator

GOP margin benchmarks hotel operational efficiency.

Total revenue

Rooms dept profit %

F&B dept profit %

Undistributed %

Rooms % of revenue

GOP margin

0.35%

GOP

$8,700,000

Undistributed cost

$7,000,000

How the math works

Rooms profit + F&B profit + other profit − undistributed = GOP. Margin = GOP / revenue.

$25M × (70% × 73% + 21% × 30% + 9% × 60% − 28%) = $25M × 33% = $8.3M GOP.

How to Use

Enter total revenue.
Enter rooms department profit %.
Enter F&B department profit %.
Enter undistributed expenses %.
Read GOP margin.

Frequently Asked Questions

GOP margin norms?

Luxury urban: 32-38%. Select service: 40-48%. Economy: 35-42%. Resort: 28-34%. Vary by location, brand, service level. Top quartile +5-10% above average. Bottom quartile -5-10% below.

Margin drivers?

Labor cost: largest variable. Utilities: 3-6% of revenue. F&B cost: 25-35% of F&B revenue (food) + 20-30% (beverage). Marketing: 4-7% of revenue. Management fees: 3-5%. Each controllable.

Benchmark sources?

STR Global (Smith Travel Research). CBRE Hotels. Warnick Hospitality Research. Aon. Each publishes quarterly benchmarks. Subscribe for your market, brand, service level. Use for portfolio benchmarking.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.