The following facts are based on actual data stabilized from 2005-2007, reflecting competent management. Net operating income per room is derived without expensing management, franchise fees or a reserve for replacement.
Price per Room:
Occupancy: 80%
Room Rate: $100
RevPAR: $80
Gross Income per Room: $35,040
Net Income per Room: $6,658 (19%)
Management/Franchise fees: $168,192 (6% of total gross) |