"The room rate should be high enough to meet fixed and variable expenses and return a fair value to investors"is a statement associated with the:
A) Cost of Renovation rate
B) Ideal Average Room Rate computation
C) Rule of Thumb room rate calculation
D) Hubbart Room Rate Formula
E) All of the above

Question

Quizplus · Accepted Answer

The Hubbart Room Rate Formula is designed to help hoteliers and investors determine the appropriate room rate. This formula takes into account both fixed and variable expenses, as well as the desired return on investment, to calculate a room rate that covers costs and provides a fair return to investors.

"The Room Rate Should Be High Enough to Meet Fixed