A given hotel has 150 rooms. Operating expenses run about $980,750 annually. Depreciation is scheduled at $645,500 per year. Additional costs (taxes, insurance, etc.) are expected to be about $226,750 for the year. The owners require a reasonable return of $647,000 per year for their investment. Net income (repeat… this is net INCOME) from other operated departments (like lounge and restaurant) is projected to be $500,000 annually. Calculate the Hubbart Room Rate required assuming a 75% annual occupancy rate:

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The Answer of A given hotel has 150 rooms. Operating expenses run about $980,750 annually. Depreciation is scheduled at $645,500 per year. Additional costs (taxes, insurance, etc.) are expected to be about $226,750 for the year. The owners require a reasonable return of $647,000 per year for their investment. Net income (repeat… this is net INCOME) from other operated departments (like lounge and restaurant) is projected to be $500,000 annually. Calculate the Hubbart Room Rate required assuming a 75% annual occupancy rate:

A Given Hotel Has 150 Rooms