Hotel

Hotel

1. Staff costs (payroll and related expenses) (30%-40%)

   • Maternity leave
   • Pension funds
   • Holiday pay

2. Building

   • Rent
   • Repair&Maintenance
   • Furniture, Fixtures & Equipment
     • Needs to be redone about every 7 year
     • Depreciation of fixed assets
   • Mortgage loan
     • Installment payments
       • Debt service
         • BANK
     • Interest

3. Utilities (gas, water, electricity)

4. Marketing & Sales

   • Direct
   • Brand Site
   • Online Travel Agent
     • Sometimes a fee per booking

5. Taxes

   • Corporate income tax
   • Permits

6. Cost of sales (what the hotel pays for what they sell (F&B)) (NOT ROOMS)

   • Foodcosts
   • Beverage costs

7. Shareholders and investors

   • Dividends

8. Insurances

9. Franchise fees

   • Royalty for use of:
     • Name
     • Concept
     • SOP's?
     • Distribution channel

10. Management fees

    • Another hotel sends a GM and gets 2% of the revenue and 10% of the gross operating profit
    • Asset light (hyatt does this) (they don't want to own or lease a hotel themselves, but they want to sell their knowledge and service)