 # How do hotels make money? How is hotel profit formula calculated? How did you do that

Original: Li Sheng First

One,

Payback

Full name: Available room revenue

Yes: average rental income

Two,

Auto order

Full name: Average daily rate

Yes: average room rate

Three,

OKK

Full name: Occupancy Rate

Yes: room occupancy

Four,

Group group

Full title: Gross Operating Profit

Yes: operating gross profit

The calculation formula looks like this

One,

Formula for calculating average price

1. Average house price

equals: =

Total sales of premises / actual number of premises leased

2. Average room rate per night

equals: =

Actual rental income / actual number of rooms rented that night * 100%

Two,

Occupancy formula

1. Fillability

equals: =

Total number of rented rooms / total number of rooms * 100%

2. Total Occupancy

is equal to:=

(number of overnight rooms + hourly rooms / 3 + day rooms / 2) / total rooms available * 100%

Three,

The formula for calculating average daily income per room (Revpar)

1. Payback

equals: =

Actual Rental Income / Total Rooms Available

2.

Payback

equals: =

Average Actual Rate * Occupancy

Four,

The ideal formula for calculating average price of a house

1. Ideal average price for a certain type of room

equals: =

Total revenue from sale of rooms of a certain type at a standard price / total number of rooms of a certain type (calculated for rooms of same type)

Five,

Formula for calculating yield index

1. Profitability

equals: =

Actual room income / Ideal room income * 100%

Six,

Formula for calculating available space

1. The total number of houses that can be sold per month

Equals=

Available rooms * days

2. Total number of rooms available for sale

Equals=

Total number of rooms - number of vacated rooms

Seven

1. Monthly operating income

equals: =

Average monthly home price * actual number of homes sold per month

2. Monthly operating income budget

equals: =

Payback * total number of rooms available for sale * number of days in a month

3. Share of completed business revenue

equals: =

Actual Operating Profit / Operating Profit Budget * 100%

Eight

Price formula

1. Single room price

is equal to:=

Total operating costs / (number ofNumber of overnight rooms + hourly rooms / 3 + day rooms / 2)

2. The cost of washing a single room

equals: =

Total laundry cost / (number of overnight rooms + hourly rooms / 3 + day rooms / 2)

nine,

GOP calculation formula

1. GOP Hotel Gross

equals: =

Hotel Gross Revenue - Hotel Total Expenses

2. Profit per number

is equal to:=

(Total Operating Income - Total Operating Expenses) / (Number of Overnight Rooms + Hourly Rooms / 3 + Day Rooms / 2)

3. Operating profit

equals: =

Operating income - Operating expenses

4.Number of GOPs

equals: =

Operating profit - controllable expenses (operating expenses + financial expenses)

5. GOP rate (rate of return)

equals: =GOP

/Total hotel income * 100%

6. Total Profit

equals: =

GOP Amount - Fixed Fee

7. Net profit

equals: =

Total profit - corporate income tax

Ten,

FIT conversion rate formula

1. FIT Conversion Rate

equals=

Number of member sales in current month (number of member sales in current month + number of guest rooms in current month)

Eleven

Formula for calculating execution rate

1. Price execution speed

Equals=

Average price per night per month

Base price

is equal to:=

The sum of each room type * number of rooms, then divided by total number of rooms

Where

Base rate

is equal to:=

Number of type A rooms * market price of type A room + number of type B rooms * market price of type B room + ...)/total number of rooms

Each type of single room * sum of number of rooms/total number of rooms

Twelve,

Common Formulas for Calculating Household Department Budget

1. Double open rate

equals: =

(Total number of guests - number of rooms to rent)/number of rooms to rent * 100%

2. Number of guests in room

is equal to:=

Total number of guests/number of rooms

Actually

Bed capacity

Number of beds sold divided by

Percentage of beds available for sale

Calculation formula:

Bed occupancy

is equal to:=

Number of beds sold / number of beds available for sale * 100%

Where

Average length of stay:

Average length of hotel stay

Calculation formula:

Average length of stay

is equal to:=

Number of guests staying overnight /Number of guests

Average room rate:

Average room rate

is equal to:=

Revenue from rooms/actual number of rooms

>

Average available room rate (sales index):

Average available room rate

is equal to:=

Revenue from rooms

Number of rooms available for rent (average room rate % average occupancy)

Average room rate:

Average room rate

is equal to:=

Revenue from rooms/number of guests

Average room rate for individual guests:

Average room rates for solo travelers

equals=

Net Rental Income FIT /Individual Room Charge

Average room rate for a group of guests:

Average room rate for a group of guests

equals=

Net rental income from team guests / number of rooms occupied by team guests

Average room rate for long-stay guests:

Average room rates for long-stay guests

is equal to:=

Net rental income from long-term guests / number of rooms occupied by paying long-term guests

Average profit per room:

Average profit per room

is equal to:=

Profit per room / Actual number of rooms

Temporary cancellation rate:

Frequency of temporary cancellations

equals=

Number of temporary cancellations / temporary cancellations * 100%

Rate for guests without reservation:

No booking

is equal to:=

Number of guests without booking/total number of guests

Number of beds or rooms per attendant:

Number of beds or rooms per person serving staff

equals: =

Actual number of beds or rooms rented/number of staff in room

Guest structure:

Guest structure

is equal to:=

Number of guests (e.g. country of origin) / total number of guests

Revenue per room:

Income per room

is equal to:=

Annual Room Revenue / Number of Rooms Available

Average room rate per year:

Average room rate per year

equals: =

Total annual room rate / number of rooms available for rent

Loss ratio MINIBAR in number:

Loss factor

equals: =

Losses/sales