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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 340,000

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 340,000

Amount needed from room sales $ _________________________

Revenue from room sales needed $ ________________________

Number of rooms available (Per Day) 275

Rooms available per year (item 2x 365) __________________________

Less allowance for vacancies (@ 25%)________________________

Number of rooms to be sold (@75%) _______________________

ADR per room to get ROA (item1/item5) $

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