Hotels process thousands of transactions daily—from room bookings and minibar charges to restaurant bills and spa treatments. Unlike retail, the "cost of goods sold" is nuanced. The perishable nature of inventory (an unsold room night is revenue lost forever) requires a unique approach to revenue management and forecasting.
Total Revenue (all departments) $500,000 Less: Total Departmental Expenses ($250,000) = Total Departmental Income $250,000 Less: Undistributed Operating Expenses ($120,000) = Gross Operating Profit (GOP) $130,000 accounting in hotel industry