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The **Hospitality Management Calculator** has a collection of equations used for hotel and restaurant management. The functions are in several logical groups.

**Food Cost % for a Hotel-**This equation computes the percentage of food cost for a hotel using the food sales over the total revenue.**Food Cost % for a Restaurant-**This equation computes the percentage of food cost for a restaurant using the food costs over the food sales.

**Average Daily Rate (ADR) -**The Average Daily Rate computes how much rent should be charged to customers over a period of time.**Average Sales per Guest (Check Average) -**The average sales per guest is the total number of sales over the number of guests served.**Beverage Available for Sale-**This equation uses the beginning beverage inventory and the related purchases made to acquire/produce the beverage for sale.**Beverage Cost -**Using the Cost of Beverage Sold over the Beverage Sales, this equation computes the percentage of the beverage cost.**Beverage Inventory Turnover Ratio -**This equation computes for the Beverage Inventory Turnover Ratio which is a ratio that shows how many times a company's beverage inventory is sold and replaced over a period.**Cost of Beverage Sold -**This equation shows how to calculate the cost of beverage sold though inventory, transfers and purchases.**Cost of Food Consumed-**This equation shows how to calculate the cost of food consumed though inventory and purchases.**Cost of Food Sold -**The Cost of Food Sold includes/takes into account employee meals and transfers alongside inventory and purchases (raw materials).**Cost per Occupied Room-**This equation finds the cost per occupied room using the cost under examination over the number of rooms occupied.**Food Available for Sale -**The Food Available for Sale is the beginning food inventory over the amount of purchases related to produce food.**Food Cost % -**Using the Cost of Food Sold over the Food Sales, this equation computes the percentage of the food cost.**Food Inventory Turnover Ratio -**Inventory turnover is the ratio of cost of food sold by a business to its average food inventory during a given accounting period.**Labor Cost % -**Labor cost percentage is a financial term used to describe a business' labor costs relative to its overall revenue.**Net Working Capital-**The Net Working Capital equation is used to determine the availability of a company's liquid assets by subtracting its current liabilities.**Occupancy %" -**In real estate, occupancy ratio is the number of units in a building that have been rented out as compared to the total number of units in the building.**Revenue per Available Customer (RevPAC)-**RevPAC, as a measure of performance, embodies a shift in perspective from an "asset play" based on hotel properties and rooms to a focus on leveraging customer equity for shareholder wealth.**Revenue Per Available Room (RevPAR)-**RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.**Revenue Per Available Room (RevPAR) v2-**RevPAR, or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured. This is a variation.**Seat Turnover-**This equation computes seat turnover which is the number of times a seat is used by different individuals during a particular meal period or time.**Server-to-Self-Serve Gests Ratio-**This equation computes the ratio of servers to self-served guests. This can be applied to buffets or in catering.**Server-to-Served Guests Ratio-**This equation computes the number of servers required to serve guests. This can be applied to sit down restaurants or cafes.**Solvency Ratio-**The solvency ratio is only one of the metrics used to determine whether a company can stay solvent.**White Rice-to-Water Cooking Ratio-**The needed water ratio for cooking white rice.**Wild Rice-to-Water Cooking Ratio-**The needed water ratio for cooking wild rice.

**Food Cost %-**Using the Cost of Food Sold over the Food Sales, this equation computes the percentage of the food cost.**Item Food Cost %-**Using the Item Food Cost over the Selling Price, this equation computes the percentage of the item food cost.**Food Selling Price-**This equation computes the selling price of a food item denoted by the food cost over its food cost percentage.**Food Selling Price v2-**The Food Pricing Factor is why the price of a food item tends to approach the cost of producing it.**Food Item Contribution Margin-**This equation solves for the Food Item Contribution Margin which a cost accounting concept that allows a company to determine the profitability of food items.**Total Food Cost-**This equation solves for the total cost of food.**Average Total Food Cost -**This equation takes the amount of Total Food Cost over a number of menu items computing the average.**Weighted Average Selling Price-**This equations finds the weighted average of the cost of food items.**Average Total Contribution Margin-**This equation finds the total contribution margin over a period of time.**Weighted Average Food Cost %-**This equations finds the weighted average of food cost percentage.**Weighted Average Item Contribution Margin-**This equations finds the weighted average of the item contribution margin.**Average Number Sold-**This equation finds the number sold (item/product/service) over a period of time.

**Average Cost per Room-**The Average Cost per Room computes how much cost (expense) is generated on a per room basis over a period of time.**Estimated Rooms Department Revenues-**This equation estimates the revenue generated from department rooms. Revenue is the income that a company receives from its normal business activities.**Estimated Room Expenses-**This equation estimates expenses incurred by a room.**Average Daily Rate (ADR)-**The Average Daily Rate computes how much rent should be charged to customers over a period of time.**Before-Tax Net Income-**Income before taxes is the total value of a company's earnings before account for income tax**Net ADR Yield-**Net ADR Yield is the rate (ADR) actually received by a hotel after subtracting the cost of the fees and assessments associated with a room sale.**Revenue Per Available Room (RevPAR) v2 -**RevPAR**,**or revenue per available room, is a performance metric in the hotel industry that is calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.**Total Non-Operating Expenses-**This equation takes the total Non-Operating Expenses which are the expenses incurred by activities not relating to the core operations of the business.**Total Undistributed Operating Expenses-**Finds the total expenses related to undistributed operation in a business.**Total Operated Departments Income Excluding Rooms-**This equation computes all the income generated from departments in a business (mainly hotel) that excludes income generated from renting or leasing rooms.**Occupancy % -**Rooms sold over the rooms available.**Occupancy % (v2) -**Rooms sold and Comp Rooms occupied over the total rooms in the hotel.**Occupancy % (v3)**- Percent occupied using the number of units in a building that have been rented out as compared to the total number of units in the building minus the rooms that are out of order (OOO).**Occupancy % (v4)**- Percent occupied using the number of units in a building that have been rented out as compared to the total number of units in the building minus the rooms that are on change rooms (OCR).**Operated Department Income (Rooms)-**The amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation.**Operated Department Income for Rooms(a variation) -**The amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation.**Net Income for Hotels-**A hotel's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.**Number of Rooms to be Sold in the Year-**As the name implies, this equation finds the number of rooms sold in a year.**Hotel’s Target Net Income-**A hotel's target total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.**Hotel’s Required ADR-**This equation finds what ADR a hotel must have. A metric widely used in the hospitality industry to indicate the average realized room rental per day.**GOP-PAR-**GOPPAR is a formula of taking the GOP at the end of the month or season and applying it across all days.**Flow-Through-**A legal business entity that passes income on to the owners and/or investors. Flow-through entities are a common device used to limit taxation by avoiding double taxation. Only the investors/owners are taxed on revenues, not the entity itself.**Yield-**The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value

**Profit -**Profit is a firm's total revenue minus its total cost.**Revenue -**The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise.**Total Variable Cost -**Total variable cost is the opportunity cost incurred in the short-run production that depends on the quantity of output.**Variable Cost per Guest (VC/Guest) -**This equation calculates the variable cost on a per guest basis.**Variable Cost per Guest (VC/Guest) v2 -**This equation calculates the variable cost on a per guest basis. This is a variation.**Total Mixed Cost -**A mixed cost is a cost that contains both a fixed component and a variable component.**Total Mixed Cost v2 -**A mixed cost is a cost that contains both a fixed component and a variable component. This is a variation.**Overhead Allocation per Profit Center -**This equation computes overhead allocation for each profit center in operation of a business.**Contribution Margin -**The contribution margin equation determines the sales amount left over after adjusting the variable costs of selling additional products.**Contribution Margin per Guest (CM/guest) -**This equation calculates the contribution margin for each guest present in a business.**Contribution Margin Percent (CM%) -**This equation calculates the contribution margin for percentage in a business. The contribution margin is a cost accounting concept that allows a company to determine the profitability of individual products.**Break-Even Point in Sales Dollars -**In accounting, the break-even point refers to the revenues needed to cover a company's total amount of fixed and variable expenses during a specified period of time.**Fixed Cost -**A cost that does not change with an increase or decrease in the amount of goods or services produced.**Break-Even Point in Guests Served -**In accounting, the break-even point refers to the revenues needed to cover a company's total amount of fixed and variable expenses during a specified period of time.**Sales Dollars to Achieve Desired After-Tax Profit -**The sales dollars desired after-tax profit**Before-Tax Profit -**A profitability measure that looks at a company's profits before the company has to pay corporate income tax.**Number of Guests to Achieve Desired After-Tax Profit -**The number of guests to achieve after-tax profit can be attained by adding the fixed costs to the before tax-profit and dividing this by the company's contribution margin per guest.**Margin of Safety -**A principle of investing in which an investor only purchases securities when the market price is significantly below its intrinsic value.**Margin of Safety Percentage -**This equation finds the percentage of margin of safety.**Margin of Safety Percentage v2 -**This equation finds the percentage of margin of safety. This is a variation.

**Average Sales per Guest (Check Average) -**The average sales per guest is the total number of sales over the number of guests served.**Variance (Sales) -**Variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold.**Variances**can be computed for both costs and revenues.**Percentage Sales Variance v2 -**This equation shows the percentage of variance in relation to sales.**Percentage Sales Variance v3 -**This equation shows the percentage of variance in relation to sales. This is a variation.**Sales Forecast -**Sales forecasting is the process of a company predicting what its future sales will be.**Sales Forecast v2 -**Sales forecasting is the process of a company predicting what its future sales will be. This is a variation.**Guest Count Forecast -**Guest Count Forecasting is the process of a company predicting what its future guest count will be.**Guest Count Forecast v2 -**Guest Count Forecasting is the process of a company predicting what its future guest count will be. This is a variation.**Sales per Guest Forecast -**Sales per Guest Forecasting is the process of a company predicting what its future Sales per Guest will be.**Average Sales per Guest Forecast -**Average Sales per Guest Forecasting is the process of a company predicting what its future Average Sales per Guest will be.**Occupancy % (v1, v2 etc.) -**In real estate, occupancy ratio is the number of units in a building that have been rented out as compared to the total number of units in the building.**Occupancy Forecast % -**Occupancy Forecast Ratio finds the percentage of the company's predicted occupancy forecast. In real estate, occupancy ratio is the number of units in a building that have been rented out as compared to the total number of units in the building.**Net Availability of Rooms -**This equation finds what rooms are suitable/ready for use at hand.**Rooms Sold or Reserved -**This equation finds which rooms have been sold or reserved by tenants.**Total Forecast Sold or Reserved after Adjustments -**This equation finds the number of forecasts sold or reserved.**Occupancy Forecast -**Occupancy Forecasting is the process of a company predicting what its occupancy will be.

**Budgeted Profit -**Budgeted profit is the difference between estimated revenues and estimated expenses as determined by the different budgets a company prepares, i.e. sales budget, production budget, selling and administrative expense budget, etc.**Sales Forecast v2 -**Sales forecasting is the process of a company predicting what its future sales will be. This forecast is done for a particular period of a time in the near future, usually the next fiscal year.**Selling Price Forecast (Check Average) -**Selling Price Forecast is the process of a company predicting what its future Selling Price will be.**Forecasted Cost -**Forecasted Cost computes the prediction of a company's desired future cost.**Cost per Cover Forecast -**Cost per Cover Forecast is the process of a company predicting what its future Cost per Cover will be.**Forecasted Labor Cost -**Forecasted Labor Cost computes the prediction of a company's desired future labor cost.**Budgeted Payroll Allocation -**The Budgeted Payroll Allocation computes the portion of a business' resource that it must distribute to its employees for a set period of time or on a given date.**Budgeted Payroll -**The Budgeted Payroll is the sum total of all compensation that a business must pay to its employees for a set period of time or on a given date.**Budgeted Hourly Payroll -**The Budgeted Payroll is the sum total of all compensation that a business must pay to its employees based on an hourly rate.**Variance (Expense) -**The difference between a budgeted, planned or standard cost and the actual amount incurred/sold.**Percentage Expense Variance v2 -**This equation shows the percentage of variance in relation to expense.**Percentage Cash Variance v3 -**This equation shows the percentage of variance in relation to cash. This is a variation.**Forecasted Costs -**Forecasted Costs computes the prediction of a company's desired future costs.

**Total Investment Value -**The value of property to a particular investor,aside from the property's general market value.**Future Value v2 -**Future Value (FV) is a formula used in Finance to calculate the value of a cash flow at a later date than originally received.**Present Value -**This equation computes the present value of money planned or estimated in the future that has been discounted to reflect its current value as if it existed today.**Return on Investment (ROI) -**The ROI equation is used to measure the benefits of a particular investment or to compare the performance or benefits across several other investments. It is also known as the rate of return.**Savings Rate of Return -**The gain or loss on a savings investment over a specified period, expressed as annual savings over the capital investment.**Payback Period -**This equation is used to quickly determine the length of time it will take to recoup the initial amount invested on a project or investment.**Cap Rate % (v1 and v2) -**A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor's potential return on his or her investment.**Property Value Estimate -**Property value is an estimate of what a home or a piece of land is actually worth.**Debt Coverage Ratio -**The debt coverage ratio is used in banking to determine a companies ability to generate enough income in its operations to cover the expense of a debt. On a broader level, it may also be used internally by a company for the same reason.

**Formula PDF List : Click Here**

**Guide for Completing Hotel/Motel Income and Expense Forms: Click Here**

**Dopson, Lea R., and David K. Hayes.***Managerial Accounting for the Hospitality Industry*. Hoboken, NJ: Wiley, 2009. Print.**Miller, Jack E.***Student Workbook Food and Beverage Cost Control, Third Edition*. Hoboken, NJ: Wiley, 2005. Print.