Hotel NOI Margin Calculator

NOI margin separates well-run hotels from struggling ones — track quarterly.

Total revenue

Departmental profit %

Undistributed opex %

Fixed costs %

NOI margin %

0.3%

NOI

$4,950,000

GOP

$7,200,000

How the math works

Departmental profit − undistributed = GOP. GOP − fixed costs = NOI. NOI margin = NOI / revenue.

$15M × (70% − 22% − 15%) = $15M × 33% = $4.95M NOI = 33% NOI margin.

How to Use

Enter total revenue.
Enter departmental profit %.
Enter undistributed opex %.
Enter fixed costs %.
Read noi margin %.

Frequently Asked Questions

NOI margin benchmarks?

Limited-service: 35–50% NOI margin. Mid-tier full-service: 25–38%. Full-service luxury: 22–32%. Resort: 28–42%. Boutique independent: 25–40%. Drivers: F&B drag (full-service has more outlets, higher labor), brand fees (5–10% of room revenue), property tax, insurance. USALI 11th edition: NOI = GOP − fixed costs (property tax, insurance, mgmt fee, FF&E reserve). Stabilized NOI / cap rate = valuation.

How does this support hotel underwriting?

Hotel investors and operators use this calculator alongside RevPAR, GOP, and flow-through analysis to validate operating assumptions. Pair it with a comp set benchmark (STR or HotStats data), brand/franchise standards, and seasonal demand patterns. Output is most useful when triangulated against trailing twelve-month financials and a forward booking pace report.

Brand vs independent treatment?

Branded hotels (Marriott, Hilton, Hyatt, IHG, Choice, Wyndham) typically follow USALI 11th edition reporting which dictates how this metric flows through the P&L. Independent and lifestyle hotels have flexibility but most lenders still expect USALI-aligned reporting. Use brand standards or local CVB data when defaults aren't representative of your asset.

Seasonal sensitivity?

Inputs based on annual averages mask peak/shoulder/trough volatility. Resort properties may see 60–80% of annual revenue concentrated in 4–6 months. Urban transient is more even but dips for weekends. Model peak month, shoulder month, and trough month separately if seasonality exceeds 20% swing. Stress test with a 10–15% RevPAR shock for cycle planning.