Net profit
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What is net profit?
The net profit consists of the revenues which are made in the four revenue groups:
- Rooms rental
- Food and beverage
- Banqueting
- Other revenues
Minus the total of the costs.
We only speak of net profit, not of margin, profit or other concepts. We do not look at any corporate tax at all.
There is a special group fines and bonuses which influences the result directly.
What remains is the net profit. More info on the page Operating review. As you take over this profit is good, in fact to good. This is caused by the fact that the management who ran the hotel really did as few spendings as possible during the last few years. This has driven up the net profit, but now there is a real arrears in maintenance and the visitors are getting dissatisfied by the fact that the hotel is outdated.
Limitations
In the simulations you do not have to worry about taxes or VAT (value added tax)
You also do not have to worry about liquidity: it is all about the net profit sot here is no profit before or after tax. Of course, this is a limitation in this game, do not forget to take care of this in reality. The regulation differ from country to country.
Profit per room
To get a basic idea on what the average profit is per room or per occupied room we use a ratio called Revenue per room.
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