How do you calculate NOI for a hotels?

Answer 1

Net Operating Income (NOI) for a hotel is calculated by subtracting total operating expenses from total revenue generated by the hotel. Total revenue includes income from room sales, food and beverage, and other services. Operating expenses encompass costs such as salaries, maintenance, utilities, and marketing, but exclude debt service and taxes. The formula can be summarized as: NOI = Total Revenue - Total Operating Expenses.