NOI. 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 a net operating loss. NOI often is viewed as a good measure of company performance. Some believe this figure is less susceptible than other figures to manipulation by management. Hotel industry example: A hotel’s net operating income percentage is most closely tied to its occupancy, although it is also influenced by average daily rate, market segment, property’s age, and brand affiliation.75
