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ADR (Average Daily Rate)Revenue/Occupied Rooms (not counting complimentary)

Revenue = $9835.00

Occupied Rooms = 121

Comp Rooms = 1

Total Revenue Rooms = 120

$9835/120

ADR = $81.96

1

REVPAR (Revenue Per Available Room)

Revenue/Total Rooms

Revenue = $9835.00

Total Rooms = 150

$9835/150

REVPAR = $65.57

OR

Occupancy % x ADR

2

Occupancy %

Occupied Rooms (including complimentary) /Total Rooms


Total Rooms = 150

121/150

Occupancy % = 80.67%

Double Occupancy

Total rooms with more than 1 person/Total Occupied Rooms

Single Occupancy = 78 Rooms

Double Occupancy = 43 Rooms

43/121Double Occupancy % = 35.53%

3

Housekeeping Hours

Occupied Room x Budgeted Minutes Per Room/60

Occupied Rooms 121

Budgeted Minutes Per Room 27

121 * 27 = 3267/60= 54.45 Housekeeping Hours

# Housekeepers = Housekeeping Hours/Hours Worked per housekeeper

5

Par Levels

Number of Rooms in Hotel x Item per room x Desired Par Level (2.5 is standard)

Total Rooms = 150 (75 Kings and 75 Double/Queens)

3 Towels Per King4 Towels Per DQ

75 * 3 = 22575 * 4 = 300Total Per Par = 525

1 Par = 525

2.5 * 5252.5 Par = 1313

6

Available RoomsTotal Rooms – Out of Order Rooms

Total Rooms = 150

Out of Order = 2

Available Rooms= 148 (For monthly total multiply by number of days in month)

7

Food Cost %

Beginning Inventory +/- Purchases & Credits – Ending Inventory/Food Sales

Beginning Inventory $15,128.00

+ Food Purchases$16, 983.00

Sub-Total $32,111.00

- Ending Inventory$14, 327.00

= Food Cost $17,784.00

Food Sales $53,891.00

Food Cost % 32.99%

8

Liquor Cost %

Beginning Inventory +/- Purchases & Credits – Ending InventoryLiquor Sales

Beginning Inventory $ 8,412.00

+ Liquor Purchases $ 4,190.00

Sub-Total $12,602.00

- Ending Inventory$ 9,273.00

= Liquor Cost $ 3,329.00

Liquor Sales $18,318.00

Liquor Cost % 18.17%

Beginning Inventory +/- Purchases – Ending InventoryLiquor Sales

9

Cost Per Occupied Room (CPOR, sometimes shown as POR)

Supply Cost/# Occupied Rooms

Guest Supply Cost = $1845.00


$1845/3303

CPOR = $0.56

Supply Cost/# Occupied Rooms

10

Labor Turnover Calculation

Total Terminations / Total Positions

Position Title Staff PositionsVoluntary

TerminationsInvoluntary

TerminationsStaff Turnover

Rate

General Manager 1 0 0 0.0%

Managers 3 1 1 66.7%

Front Desk 5 1 2 60.0%

Housekeeping 10 6 1 70.0%

Maintenance 1 1 0 100.0%

Total 20 9 4 65.0%

11

Turnover Cost Calculations

PositionsSeparation

CostReplacement

CostTraining Cost

Cost of Performance

GapTotal Turnover

CostsAnnual

Turnover Costs

General Manager $2000 $1000 $2000 $10,000 $15,000 $0.00

Managers $500 $250 $1500 $5000 $7250 $14,500.00

Front Desk $250 $250 $1500 $2500 $4500 $13,500.00

Housekeeping $200 $150 $1000 $500 $1850 $12,950.00

Maintenance $250 $250 $750 $2500 $3750 $3,750.00

Total $3200 $1900 $6750 $20,500 $32,350 $44,700.00

12

Net Operating Income (NOI)Gross Operating Profit - Non-Operating Expenses = NOI

Gross Operating Profit $88,400

Insurance -$ 8,000

Taxes(property, personal, etc) $ 4,000

Amortization (Interest on loan) $36,000

Net Operating Income $40,400

GOP - Non-Operating Expenses = NOI

13

Return on Investment (ROI)Net Operating Income (NOI)/Total Investment (TI)

Total Investment $3,100,000NOI $ 40,400

ROI 1.3%

NOI/TIROINOI (Net Operating ICN)Total Investment

14

Current RatioAssetsLiabilities

NIBT – TAXES=NIAT

15

Food and Beverage1kg = 2.2 lb

100 g = 3.5 oz

1 oz = 28 g

1 liter = 1.06 qts

1 liter = 33.82 ozs

1 gal = 3.8 liter

1lb = 16 ozs

4 quarts = 1 gallon

8 quarts = 1 peck

4 cups = 1 quart

0F = 0Cx9/5+32

0C =0F – 32X5/9

Standard portion cost = Total cost/number of portions

% yield = servable weight/original weight x 105

16

Food and BeverageCost per servable pound = As purchased priceYield Percentage

Quantity to Purchase = Quantity needed x edible portionYield Percentage

Cost Factor = Cost per servable poundAs purchased Price

Adjustment Factor = Desired YieldOriginal Yield

Multiplier = 1 Food Cost

17

CPV

Calculating a selling price in order to obtain your goal of a profit

S=Selling Price

X=Rooms Sold

F=Fixed Cost

V=Variable Cost Per Room

SX=Total Revenue

VX=Total Variable Costs

DP=Desired Profit

CM=Contribution Margin

S= V+ F

18

X

S=(F+DP) + V X

X= F S-V

X= F CM

CM=S-V

19

RevenueYield = Potential Revenue

Potential Revenue = Rack X Available Rooms

Labor CostLabor Cost % = Revenue

20

Par Levels

Number of rooms in hotel x linen per room x Desired Par Level

Total Rooms = 150 75 Kings/75 DQ

3 Towels Per King4 Towels Per DQ

75 * 3 22575 * 4 300

1 Par = 525

Desired Par 2.5

2.5 * 525 = 1313

3 Pillows Per King4 Pillows Per DQ

21

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