Account & Finance-6

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Operating Cost for Hotel Industry

Sum-1 Calculate Room Days and Rent chargeable from Customer Per Room Days from the Following Details of RAGHUVANSI Hotel Number of Rooms Occupancy Rate Working Days of the Month Working Month of the Year Total Expenses During the Year Profit Margin on Rent 150 80% 30 12 86,40,000 50%

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Operating Cost for Hotel Industry

Solution for Sum-1 Calculation of Room Days : Room Days = No. of Rooms x Days of Month x Month of Year x Occupancy Rate Room Days = 150 x 30 x 12 x 80% = 43,200 Total Rent = Total Cost + Profit [ 50 % on Rent = 100% on Cost] = 86,40,000 + 86,40,000 = 1,72,80,000 Rs. Rent Per Room Days = 1,72,80,000 43,200 = 400 Rs.

Rent Per Room Days = Total Rent Room Days

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Operating Cost for Hotel Industry

Sum-2 Calculate the Rent per Suite from the following Details :

No. of Single Room Suite 51,300 No. of Double Room Suite 22,800 No. of Triple Room Suite 9,300 Total Collection of Rent Rs. 62,46,000 Room Rent is to be determined in such a way that Rent of Single Room Suite is 2/3 of Double Room Suite while Rent of Double Room Suite is of Triple Room Suite

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Operating Cost for Hotel Industry

Solution for Sum-2 (1) Finding the Proportion of Room Suite Let Rent of Three Room Suite be Rs. 4 Hence Rent for Double Room Suite be Rs. 4 x and Rent for Single Room Suite be Rs. 3 x 2/3 Hence Proportion of Room Suite be 2:3:4 = Rs. 2 = Rs. 3

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Operating Cost for Hotel Industry

Solution for Sum-2 Finding the Weighted Room Days Weighted Average Room Days Single Room Suite Double Room Suite Triple Room Suite Total Weighted Room Days = = = = No. of Room x Proportion 51,300 x 2 = 1,02,600 22,800 x 3 = 68,400 9,300 x 4 = 37,200 2,08,200

Finding the Room Weight Per One Proportion Rent Per Room Days = Total Rent (Per Proportion) Weighted Room Days Rent Per Room Days = (Per Proportion) Rent Per Proportion = 62,46,000 2,08,000 Rs. 30

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Operating Cost for Hotel Industry

Solution for Sum-2 Finding the Suite Rate Suite Rate Single Room Suite Double Room Suite Triple Room Suite = = = = Rent per Proportion x Proportion 30 x 2 = 60 30 x 3 = 90 30 x 4 = 120

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Operating Cost for Hotel Industry

Sum-3 Kishan Hotel is having 100 single Rooms and 20 Double Rooms hotel runs for 365 days in a year and occupancy rate is 80% Rent for Double Room is 125% of Single Room. Data Regards Cost are as follows: Variable Cost : Rs. 220 per day for single Room : Rs. 350 per day for Double Room Fixed Cost : Rs. 120 per day for Single Room : Rs. 250 Per day for Double Room Find the Room Rate per day for Single and Double Room in such a way Hotel gets 20% margin on Room Rent [Room Days : Single : 29,200 ; Double : 5,840; Room Rate : Single : Rs. 460 ; Double : Rs. 575

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