HTM 402 Study Guide - Final Guide: Sales Comparison Approach, Liquor Control Board Of Ontario, Income Statement

• School: Ryerson University
• Department: Hospitality and Tourism Management
• Course: HTM 402
• Professor: Richard Wade

Document Summary

Average daily rate (adr) = net rooms revenue/# of paid occupied rooms. Published rate: a rate listed in directories or intermediaries. Commercial rate: a discounted room rate given to certain commercial travellers. Contract rate: a discounted room rate available to specific high volume users such as airlines, convention groups and bus tours. Food cost - %30% - 40% of food sales. Beverage cost - %18% - 30% of beverage sales. Return on shareholder equity - %20% - 30% of owner equity. All of the following indicators are related to total sales: Labour & employee benefits cost - %30% - 35% Rooms revenue = occupancy % x average room rate x room count x 365. The worth of a business or asset at the date, according to terms of cash. Components: land, building, furniture, equipment, inventory, working capital and any other business value. Cornell hotel and restaurant administration quarterly: why restaurants fail . 3 reasons for failures: economic, marketing and managerial.