GOP (Gross Operating Profit)
GOP, or Gross Operating Profit, is a key measurement used in hotels and restaurants to show how well a property is performing financially. Think of it as the money left over after paying for daily operations like staff wages, food costs, and utilities, but before considering things like rent, property taxes, or loan payments. It's like taking all the money a hotel makes and subtracting the basic costs of running it. Hotel managers and owners use GOP to compare different properties' performance and make decisions about staffing, pricing, and operations.
Examples in Resumes
Increased GOP by 15% through strategic cost management and revenue optimization
Managed daily operations resulting in Gross Operating Profit growth of $2M year-over-year
Led team of 50 staff members while maintaining GOP margins above industry standard
Typical job title: "Hotel Managers"
Also try searching for:
Where to Find Hotel Managers
Professional Networks
Job Boards
Industry Resources
Example Interview Questions
Senior Level Questions
Q: How would you develop strategies to improve GOP in an underperforming hotel?
Expected Answer: A senior manager should discuss analyzing revenue streams, cost-cutting opportunities, staff optimization, implementing efficiency measures, and creating action plans with specific targets and timelines.
Q: How do you balance maintaining high service standards with GOP targets?
Expected Answer: Should explain approaches to optimize staffing levels, train teams for efficiency, implement cost controls while maintaining guest satisfaction, and use guest feedback to make informed decisions.
Mid Level Questions
Q: What factors affect GOP and how do you monitor them?
Expected Answer: Should mention room revenue, food and beverage costs, labor costs, utility expenses, and explain how they track these through daily/weekly reports and benchmarking.
Q: How do you manage labor costs while maintaining service quality?
Expected Answer: Should discuss scheduling strategies, cross-training staff, monitoring peak periods, and adjusting staffing levels based on occupancy and business demands.
Junior Level Questions
Q: What is GOP and why is it important in hotel operations?
Expected Answer: Should explain that GOP is revenue minus operating expenses, and its importance in measuring hotel performance and operational efficiency.
Q: What basic steps can you take to improve GOP?
Expected Answer: Should mention controlling costs, monitoring expenses, efficient scheduling, reducing waste, and implementing basic revenue management practices.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of financial reports
- Cost control fundamentals
- Staff scheduling
- Revenue tracking
Mid (2-5 years)
- Budget management
- Performance analysis
- Department cost optimization
- Revenue management basics
Senior (5+ years)
- Strategic financial planning
- Market analysis and forecasting
- Asset management
- Multi-department optimization
Red Flags to Watch For
- No understanding of basic financial terms and reports
- Inability to explain relationship between costs and revenue
- Lack of experience with budgeting or cost control
- No knowledge of industry benchmarks or standards
