ThuderingWind
Well-known member
- Joined
- Dec 30, 2012
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One Inn we are looking has provided some numbers for us to review. Using the Planning spreadsheet I found here (via a link in the resources) something is not adding correctly.
Inn states 627 room nights sold out of 1300 available for a year - 48% (they noted a vacation taken and inn closed). Income listed for the year $56K (rounded).
Spreadsheet found here uses: 4 rooms * $114 ADR * 48% = $78K should be the income.
The math is missing $22K of money.
Does this mean they really discounted rates overall? Or is it possible the $56K is "profit" after operating expenses ($20K rounded)? This gets us closer to the $78K number. And I do know they are missing one expense (taxes paid for the part-time employee - only listed Worker's Comp and bookkeeping).
If the $56K is Profit, then the Inn is in great shape and can handle a large debt load against income.
They are on vacation until the middle of the month (still open this time) so I can't get all the questions answered.
I am interested in what y'all have to say as I can't make heads nor tails of it.
Inn states 627 room nights sold out of 1300 available for a year - 48% (they noted a vacation taken and inn closed). Income listed for the year $56K (rounded).
Spreadsheet found here uses: 4 rooms * $114 ADR * 48% = $78K should be the income.
The math is missing $22K of money.
Does this mean they really discounted rates overall? Or is it possible the $56K is "profit" after operating expenses ($20K rounded)? This gets us closer to the $78K number. And I do know they are missing one expense (taxes paid for the part-time employee - only listed Worker's Comp and bookkeeping).
If the $56K is Profit, then the Inn is in great shape and can handle a large debt load against income.
They are on vacation until the middle of the month (still open this time) so I can't get all the questions answered.
I am interested in what y'all have to say as I can't make heads nor tails of it.