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.
- All Cost Calculators
- Subscription Cost Calculator
- Occupancy Cost Calculator
- Occupancy Rate Index Calculator
Hotel Cost Formula
The following formula is used to calculate the Hotel Cost.
HC = (R-P) / #R
- Where HC is the Hotel Cost ($/room)
- R is the total hotel revenue ($)
- P is the total hotel profit ($)
- #R is the number of rooms sold
How to Calculate Hotel Cost?
The following example problems outline how to calculate Hotel Cost.
Example Problem #1
- First, determine the total hotel revenue ($). 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)
