- Definition: A company’s operating income after operating expenses are deducted but before income taxes and interest are deducted. If this is a positive value, it’s referred to as net operating income, while a negative value is called net operating loss. NOI often is viewed as a good measure of a company’s performance.
- Example: A hotel’s NOI percentage is most closely tied to occupancy, although it is also influenced by average daily rate, market segment, property’s age and brand affiliation.
Reference: https://hotelnewsnow.com/Articles/6217/Hotel-Industry-Terms-To-Know#D