Target return pricing for hotels
Learn how to determine room rates and assess the feasibility of hotel projects with the Target return pricing for hotels course. Ideal for hotel managers, investors, and owners, this course covers key performance indicators, profit calculations, and the use of square footage to calculate rates. Whether you’re opening a new hotel or investing in the industry, this course will help you make informed decisions and ensure profitability in your venture. Suitable for beginners and those with accounting backgrounds.
What you’ll learn
- Identify the Return of Investment
- Determine departmental income
- Determine departmental costs
- Determine room rates based on R.O.I.
- Learn to use the Hubbart-Formula
- Learn return target pricing
- Determine profitability of the hotel
This course ‘Target return pricing for hotels’ is based towards students who are interested in learning how to figure out room rates for new hotel projects and determine if the project is feasible. This could be building a new hotel, investing in a hotel project or the renovation of an exisisting property.
Together we will discuss what needs to be achieved in order to achieve a pre set return on investment for the hotel owner and or other investors. You will learn how to simply decide room rates for a basic hotel property like a bed and breakfast or a hotel with limited departments.
You will also learn how to assess a hotel’s value based on this principle and a limited amount of key performance indicators, like Average Room Rate and RevPAR.
Together we will discuss all the elements needed to set up a full and thererfor more complex Target return pricing. We will follow an example of a full scale hotel to determine what needs to be achieved to get the desired net profit after profit taxes.
By the end of this course you will have a solid foundation and understanding of Target return pricing for hotels. You will learn how to calculate profit taxes on unknown revenues to get a desired outcome. You’ll learn how interests, fixed franchise fees and variable franchise fees are included in this set up. We take all departements of the hotel into consideration to determine the profit of the rooms division.
Based on our set up we can calculate room rates for the rooms of our hotel. We will take the occupancy rate and the double occupancy rate into the equation as well to come up with different rates. And to make it more interesting we’ll have a look at how we can use square footage to calculate room rates for our hotel.
If you are part of a management team responsible for opening a new hotel or if you are interested in, investing in your own hotel or lodging company, target return pricing is definitely something to have a closer look at to help you determine if the project is feasible for the market you want to operate in!
Who this course is for:
- Hotel managers
- Investors
- Hotel owners
- People who want to start their own hotel
- Accountants
User Reviews
Be the first to review “Target return pricing for hotels”
You must be logged in to post a review.
There are no reviews yet.