Hotel Financial Evaluation
Hotel Financial Evaluation
This evaluation is designed to assess the financial performance and health of a hotel. It provides structure, criteria, and guidelines for collecting and analyzing financial information.
Evaluation Criteria
-
Revenue: Total income generated from hotel operations including rooms, food, beverage, and other services.
-
Operating Expenses: Total costs incurred in running the hotel, including salaries, utilities, maintenance, and supplies.
-
Gross Operating Profit (GOP): Profitability measure representing total revenue minus total operating expenses.
-
Net Operating Income (NOI): Income generated by the hotel after deducting operating expenses, but before interest and taxes.
-
Occupancy Rate: Percentage of available rooms that are occupied over a given period.
-
Average Daily Rate (ADR): Average revenue earned per rented room over a given period.
-
Revenue Per Available Room (RevPAR): Revenue earned per available room over a specific period. Calculated as ADR multiplied by Occupancy Rate.
-
Profit Margin: Percentage of revenue that has turned into profit, calculated as Net Income divided by Revenue.
|
Criterion |
Metric |
Min/Max/ Expected Value (if applicable) |
Rating (1-5) |
|---|---|---|---|
|
Revenue |
Total Revenue |
||
|
Operating Expenses |
Total Expenses |
||
|
Gross Operating Profit (GOP) |
GOP = Revenue - Operating Expenses |
||
|
Net Operating Income (NOI) |
NOI = Gross Operating Profit - (Interest + Taxes) |
||
|
Occupancy Rate |
Occupancy Rate = (Occupied Rooms / Available Rooms) * 100% |
||
|
Average Daily Rate (ADR) |
ADR = Total Room Revenue / Occupied Rooms |
||
|
Revenue Per Available Room (RevPAR) |
RevPAR = ADR * Occupancy Rate |
||
|
Profit Margin |
Profit Margin = (Net Income / Revenue) * 100% |
