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Q.1 The Hubbart Room Rate Formula Operating Expenses 2,000,800 Taxes and Insurance 400,000 Depreciation 350,750 Reasonable ROA 900,000 Total Less Income from other sources
Q.1 The Hubbart Room Rate Formula Operating Expenses 2,000,800 Taxes and Insurance 400,000 Depreciation 350,750 Reasonable ROA 900,000 Total Less Income from other sources Amount needed from room sales $ Revenue from room sales needed $ Number of rooms available (Per Day) 275 Rooms available per year (item 2x 365) 25%) Less allowance for vacancies (@ Number of rooms to be sold (@75%) ADR per room to get ROA (item1/item5) $ 340,000
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