Hotel Revenue Glossary · Financial

NOI (Net Operating Income)

Total hotel revenue minus all operating expenses, before debt service, capital expenditures, and income taxes. NOI represents the property's ability to generate cash from operations and is the starting point for most hotel valuation models.

Why it matters: NOI is the single most important number for hotel owners and investors because it determines the property's value and its ability to service debt. Revenue management directly drives NOI — every dollar of incremental revenue with high flow-through increases NOI.

All glossary terms GOPPAR (Gross Operating Profit Per Available Room) EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) Flow-Through