ANSWERS · ASSET MANAGEMENT & INVESTMENT

What is gross operating profit (GOP) in a hotel, and why do owners watch it?

4 hotel leaders answerIsaac J. Collazo, Sophie Richard, Emmanuel Dissez and Rastko DjordjevicPublished 7 Nov 2026

Gross operating profit (GOP) is what a hotel earns from its operations after operating costs, and owners watch it as their measure of profit. Isaac J. Collazo of STR says owners are all about GOP, while asset managers read the whole P&L, costs included. Sophie Richard's hotel had occupancy in the high eighties and a good GOP margin, yet she gave up 13% of occupancy for better quality revenue. Emmanuel Dissez counts GOP, RevPAR and cash flow as the minimum an asset manager monitors, and Rastko Djordjevic looks for margin without hurting the brand.

This answer is part of our guide to hotel asset management.

In their own words

Isaac J. Collazo
Vice President, Analytics, STR (Smith Travel Research)
“They're looking at everything because they're trying to maximize profitability. ... owners are all about GOP.”
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Sophie Richard
M&L Group
“We're in the high eighties at the time, so it was actually pretty strong. ... And we had a good GOP margin as well. ... you can always do better, and then we deep dive, and then we make a bold move. And that's when you lose 13% of your occupancy overnight.”
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“It's really, the channel distribution. And because this is where my cost is mostly impacted, I want my good room flow through and the quality of the revenue for me is key.”
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Emmanuel Dissez
Schroders Capital
“Good asset managers can read the p and l, challenge a budget, monitor RevPar, GOP, cash flow, etcetera. That's the technical foundation. ... a great asset manager knows that the numbers are always late.”
Listen from 24:40Reposition with the exit in mind: a Barcelona case
Rastko Djordjevic
Managing Director EMEA and global lead, JLL Asset Management, JLL
“Where is the opportunity to create more margins? How can I save more costs? How can I renegotiate the contract? ... It is easy to go in and cut costs. Right? But this is everything that you do has to be thought through ... cannot affect the brand positioning.”
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