Using the Hubbart formula, how to find the room pricing in detailed steps?

Here is the information:

200 rooms, 10.000.000$ cost, fully equipped

Equity = 2.5 M$, ROE = 15%, bank loans : interest = 12 %, Expected occupancy = 75%

Property taxes: 250000, Insurance 50000, Depreciation: 300000, Adm.& General: 300000,

Sales & Marketing Expense: 200000, maintenance: 200000, Utility Cost: 300000 Room expense: 10/room sold, Operating Supplies: 240000, Food Income: 90000, Beverage Income: 60000, Telecommunication Department Income: 20000, Other Income: 100000

The final answer should be $66.53.

Answer rating: 100% (QA)

The Hubbart formulae is used in hotel management to determine the proper aver... View the full answer