Frequently Asked Questions

Financial Metrics

What is the operator's incentive fee?

The incentive fee is a second fee the operator only earns if there is profit. Because it is calculated on GOP (gross operating profit), if the operator overspends on cleaning or supplies, GOP drops and their own payment drops with it.

That is the whole point of the model: it aligns the operator's interests with the owner's. Lower operating costs mean higher GOP, and a higher incentive fee for them. Being efficient pays off.

Example: in July 2026 the incentive fee was $91,956 COP (7% of GOP). It is a meaningful change from the previous arrangement, where the operator's cleaning charges were discretionary and not auditable.

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What is the operator's incentive fee? | FAQ | Circular Urban