Hotels & assets
Flow-Through
The share of incremental revenue that reaches profit — actual profit minus budget profit, over actual revenue minus budget revenue. The hospitality rule of thumb is that at least half of extra revenue should survive to GOP.
Rooms-led growth flows richer than food-and-beverage-led growth, for the obvious reason: an extra occupied room costs very little, while an extra cover costs the food and the labour to cook and serve it. A target that ignores the mix is measuring the mix.
And its mirror is the half nobody runs. Flex tests whether costs actually SHED when revenue falls short — which is how a business discovers, in a bad quarter and not before, that its variable costs were nothing of the kind.