What is the average room rate?
X Hotel is building its 18th hotel which is a 150 Hotel Room estimated building cost is $5 million dollars. The fitting out cost is $2 million dollar
X Hotel is building its 18th hotel which is a 150 Hotel Room estimated building cost is $5 million dollars. The fitting out cost is $2 million dollars, working capital is $500,000 dollars. The project is financed by a 6 million load with 15% interest per annum. The overall return is 15 %. Tax is 30% on profit. Annual operating expense is $2.5 million, Food and Beverage revenue is $400,000 dollars. Cost of room operation is $300,000. Occupancy rate is 75%. Calculate the average room rate.
or:X Hotel is building its 18th hotel which is a 150 Hotel Room estimated building cost is $5 million dollars. The fitting out cost is $2 million dollars, working capital is $500,000 dollars. The project is financed by a 6 million load with 15% interest per annum. The overall return is 15 %. Tax is 30% on profit. Annual operating expense is $2.5 million, Food and Beverage revenue is $400,000 dollars. Cost of room operation is $300,000. Occupancy rate is 75%. Calculate the average room rate.
or:thats not how you need to calculate.. Room rate is depends on how much demand in market. and how much people can afford. I think this is job for marketing/sale. They will put a higher price and slowly decrease/increase the price according to market and demand.
