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