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    Jorge A. Martinez
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    This document provides operating data for three hotels - A, B, and C. It includes information on rooms, occupancy rates, expenses, taxes, depreciation, other incomes, and return on investment goals. Students are asked to: 1) Calculate room rates for each hotel using the Hubbart Formula; 2) Identify the fixed and variable costs for each hotel; 3) Determine which hotel's situation is closest to the breakeven point based on the data given.

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    Hotel Operations Problem Solving

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    This document provides operating data for three hotels - A, B, and C. It includes information on rooms, occupancy rates, expenses, taxes, depreciation, other incomes, and return on investment goals. Students are asked to: 1) Calculate room rates for each hotel using the Hubbart Formula; 2) Identify the fixed and variable costs for each hotel; 3) Determine which hotel's situation is closest to the breakeven point based on the data given.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    11 views1 page

    Hubbart Problem Solving

    Uploaded by

    Jorge A. Martinez
    This document provides operating data for three hotels - A, B, and C. It includes information on rooms, occupancy rates, expenses, taxes, depreciation, other incomes, and return on investment goals. Students are asked to: 1) Calculate room rates for each hotel using the Hubbart Formula; 2) Identify the fixed and variable costs for each hotel; 3) Determine which hotel's situation is closest to the breakeven point based on the data given.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    PANAMA UNIVERSITY

    TOURISM DEPARTMENT
    HOTEL OPERATIONS MANAGEMENT
    PROF. JORGE A. MARTINEZ

    Problem Solving

    Calculate, according to Hubbart Formula ( I and II), the room rates for the following hotels.

    HOTELS A B C
    Rooms 500 350 475
    Average Occupancy 75% 92% 52%

    Operating and Administrative


    Expenses 2,450,000.00 1,780,580.00 2,235,000.00
     Rooms Department
     Telephone Department
     Administrative Payroll
     Advertising and Promotion
    Taxes 290,000.00 132,540.00 180,450.00
    Depreciation (Book Value)
     Hotel Machinery 70,000.00 (12%) 65,500.00 (10%) 38,690.00 (13%)
     Land 1,300,000.00 (15%) 950,000.00 (15%) 580,980.00 (15%)
     Automobile 45,000.00 (20%) 28,545.00 (20%) 36,860.00 (20%)
     Office Equipment 12,500.00 (10%) 9,458.00 (10%) 6,745.00 (10%)
    Others Incomes
     Casino 8,678.00 9,612.00 12,798.00
     Stores 12,630.00 9,780.00 10,456.00
    Return on Investment (ROI) 25% over Assets 35% over Assets 28% over Assets

     Present the math operations for each hotel.


     Explain what the fixed and variables costs are for each one?
     Explain what hotel’s situation according to the BEP is?

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