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Haha , Fawlty Tower. My kiwi hotel specialist has shown me the viedo clip and my colleague's hubby are doing a film about john cleanse in uk now.
A few basic financial ratio you will need to calculate before taking business.
Room nights available: 10 rooms multiply 365 days then you got 3650 room inventory
Occupancy rate: if 50 percent, you are selling 1825 rooms a year. 60 to 70 would be minimal to make operation sustainable for bigger hotels. I have seen a hotel survived on 20 percent, which is a very unique case.
Average daily rate: say 100. Please note the rack price is significantly higher the true sales price. A lot of discount happens, and it is commercial secret as well
Your expected turnover: simple math 182,500
Net profit 10-20 percent in the industry, you can do the math.
I agree with the above, comments, it is a life style choice . If you want to run commercially, you need to get much bigger size operation.
I am not an expert, just my 2 cents from my experience.
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