Sunday, May 3, 2009

How do you calculate hotel/ bed & breakfast occupancy rates and profit margins from the number of rooms?

What I would like to know is how exactly does a hotel or bed & breakfast calculate its profit margin in regard to its occupancy rates. I would also appreciate any links to websites concerning this kind of info.Thanx.


Well, you multiply the rate of a room by the number of those rooms. You add in the cost of breakfast and any amenities. Then you add it all up and charge a bit more than how much it actually costs to make the profit. They can charge anything since there really isn't a law against it.

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