Question

The hotel property has a total of 350 available guest rooms/suites, one restaurant and one bar, meeting space and a spa. Using the POM and Energy Report for 2011 base your answers on “this year” data. Assume an annual achieved occupancy rate of 70% at the hotel property.

Determine the following cost per available room:

Maintenance Expense (costs other than those related to labor)

HEAT, LIGHT AND POWER         Y.T.D: JANUARY TO DECEMBER
	THIS YR : 2011
	$	%
ELECTRIC	174,700	5.7%
HEATING FUEL	100,000	3.3%
WATER	36,600	1.2%
PROPANE	27,000	0.9%
LESS CREDITS AND RECOVERIES	-12,500	0.4%
TOTAL HEAT, LIGHT AND POWER	325,800	10.7%
PAYROLL, REPAIRS AND MAINTENANCE --- P.O.M.
PAYROLL & RELATED EXPENSES
SALARIES	72,000	2.4%
PAYROLL TAXES & EMP. BENEFITS	16,344	0.6%
TOTAL PAYROLL & RELATED EXPENSES	88,344	2.9%
OTHER EXPENSES
EQUIPMENT	7,200	0.2%
TECHNOLOGIES	37,200	1.2%
BUILDING	21,600	0.7%
REPAIR & REPLENISH	32,000	1.0%
TRASH REMOVAL	21,000	0.7%
OPERATING SUPPLIES	10,000	0.3%
ELEVATOR MAINTENANCE	13,200	0.4%
FIRE PROTECTION	6,000	0.2%
LANDSCAPING/FLOWERS	6,000	0.2%
HOTEL VECHILE EXPENSE	5,350	0.2%
TOTAL OTHER EXPENSES	159,550	5.2%
TOTAL P/R, REPAIRS AND MAINTENANCE TOTAL POMEC BUDGET	247,894	8.1%

Answer 1

Answer : The cost per available room is $2068.14. workings are given in the attachment

Calculation of cost per available room Particulars Variable cost(Heat , Light & Power 325800 70% of variable cost 228060 Standard or fixed cost Pay roll & related expenses 88344 Other expenses 159550 P/R, Repairs & Maintenance 247894 495788 Total cost 723848 Cost per available room 723848/350 2068.14