Hotel Cost Calculator

Formula

The formula to calculate the Hotel Cost (HC) is:

\[ HC = \frac{R - P}{NR} \]

Where:

Hotel Cost: The cost per room, calculated by subtracting the hotel profit from the hotel revenue and dividing by the number of rooms sold.
Significance: Helps in determining the cost efficiency and profitability of hotel operations.

Let's say the total hotel revenue (R) is $50,000, the total hotel profit (P) is $20,000, and the number of rooms sold (NR) is 100. Using the formula:

\[ HC = \frac{50,000 - 20,000}{100} = 300 \]

So, the hotel cost (HC) is $300 per room.