Adjusted Gross Operating Profit (AGOP) refers to a financial metric used in the hospitality industry to assess the profitability of hotel operations after accounting for certain expenses. It includes revenue generated from room sales, food and beverage services, and other sources, minus operating expenses such as payroll, utilities, and maintenance costs. AGOP is a key indicator of a hotel's financial performance and helps management evaluate the efficiency and profitability of their operations.
How is Agop calculated?
AGOP is calculated by subtracting total operating expenses from total revenue, including room revenue, food and beverage revenue, and other income streams.