Enter the total hotel revenue ($), the total hotel profit ($), and the number of rooms sold into the Hotel Cost Calculator. The calculator will evaluate and display the Hotel Cost.

## Hotel Cost Formula

The following formula is used to calculate the Hotel Cost.

HC = (R-P) / NR
• Where HC is the Hotel Cost ($/room) • R is the total hotel revenue ($)
• P is the total hotel profit ($) • NR is the number of rooms sold To calculate a hotel cost, subtract the hotel profit from the hotel revenue, then divide by the number of rooms sold. ## How to Calculate Hotel Cost? The following example problems outline how to calculate Hotel Cost. Example Problem #1 1. First, determine the total hotel revenue ($). The total hotel revenue ($) is given as 25,000 . 2. Next, determine the total hotel profit ($). The total hotel profit ($) is calculated as 10,000 . 3. Next, determine the number of rooms sold. The number of rooms sold is found to be 60. 4. Finally, calculate the Hotel Cost using the formula above: HC = (R-P) / #R Inserting the values from above yields: HC = (25,000-10,000) / 60 = 250.00 ($/room)

Example Problem #2

The variables needed for this problem are provided below:

total hotel revenue ($) = 7000 total hotel profit ($) = 3000

number of rooms sold = 50

Entering these values and solving gives:

HC = (R-P) / #R = 200.00 (\$/room)