Hotel Industry Glossary

Hotel Industry Glossary, with the definitions and meaning of hotelier terminology, lingo, jargon and acronyms.

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Term Definition
Room Type

What is the meaning / definition of Room Type in the hospitality industry?

In Hospitality, the days of a hotel only offering guests standard rooms for reservations are long gone! Nowadays, there are myriad room types and suites at hotels around the world – a delightfully eclectic selection – meaning that any size of group and most preferences can be catered for.Super User

ROI - Return of investment

A KPI that helps to evaluate the efficiency of an investment on a company, on a business project, on a marketing action... The ROI measures the return of an investment in relation to the cost. To do the calculation of this KPI we have to divide  the benefit obtained after the investment  by the cost of it, and the number that we obtain should be a percentage 

Find here the ROI formula:

ROI = (Benefit - Cost)/Cost




NOP - Net Operating Profit

What is the signification / definition of NOP in the hospitality industry?

NOP stands for Net Operating Profit, also known as NOI (Net Operating Income). It is a KPI / calculation of net operating income / profit after subtracting all of the operating expenses from the revenues generated by a hotel, a resort, a B&B or a hostel..


KPI - Key Performance Indicator

What is the meaning / definition of KPI / Key Performance Indicators in the hotel industry?

KPI is an acronym for: Key Performance Indicator

KPI includes a set or ratios and formulas that help calculate and indicate the performance and progress of a hotel accordingly to their plans and actions.

GOP Gross Operating Profit

What is the meaning of GOP in the hospitality industry?

It defines the level of operational profitability of a hotel. It is a KPI which alludes to the Hotels profits before subtracting all of their operating expenses. 

GOP stands for: Gross Operating Profit

How do you calculate GOP?

  • GOP Formula: Gross Operating Revenue - Gross Operating Expences

What is the signification / definition of EBITDA in the hospitality industry?

This KPI is used to define how profitable a company or business is in reference to its operations (the profit on the products that the company produces and sells).

EBITDA means : Earnings Before Interest, Taxes, Depreciation and Amortization.