Departmental Profit: Variable and Fixed Costs in Rooms, F&B and Other Departments
This lesson is part of the course
In this lesson
You turn each department's revenue into departmental cost and profit with a variable and a fixed part, pool the margin over the hotel, and see how a 10% revenue drop hits a high-fixed-cost department much harder.
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Lessons in this course
- Revenue Build-Up: Room Nights, ADR, RevPAR and Other Revenue Locked
- Departmental Profit: Variable and Fixed Costs in Rooms, F&B and Other Departments Locked
- Undistributed Costs and Gross Operating Profit (GOP) Locked
- Management Fees, FF&E Reserve and Net Operating Income (NOI) Locked
- Valuation: NOI ÷ Cap Rate, Value per Key and Sensitivity Locked
- Lease vs Management Contract: Who Carries the Risk? Locked
- Refurbishment: Capex per Key, RevPAR Uplift, Payback and Value Creation Locked
- Five-Year Hold: Purchase, Exit at a Terminal Cap Rate, IRR and Chart Locked