Staff to Room Ratio is one of the critical factors that determine an optimum level of balance between permanent staff and hotel room capacity. Determine the average cost to replace “consumable” amenity items such as soap, shampoo, conditioner, lotion, toilet paper, tissues, and coffee. Room Attendant Daily Assignment Sheet for Housekeeping. You therefore don’t want to be caught short-staffed and have disgruntled guests who have to wait for a long time to get service. (The formula is R x O x 365 x W x 1.B / 60). what is the average cost to run a heating and air unit in a standard 325 square feet hotel room. Keep in mind that you only calculate the housekeeping labor costs for employees involved in servicing a guestroom. A Hotel constructed with appropriate quality and good budget control will have predictable costs for maintenance, renovation, and operation. https://www.hotelmanagement.net/operate/examination-hotel-labor-costs Room attendants could work at a comfortable pace no matter what the mix of checkouts and stayovers. This KPI is calculated by dividing the overall cleaning costs with the number of rooms. Say at 12 cents a KW. Property A (the test hotel) reduced their housekeeping MPR from 28.2 minutes to 26.1 minutes (7.4%) over the four month test period. Here’s a simple change that most hotels can benefit from: Housekeeping is a huge cost for every hotel. Even so, we were still surprised by how big of a difference using flexible housekeeping targets made in this case. Large Sofa (3 – 5 seats) – $130 to $180. However, you also do… Neither hotel saw any material change in their quality scores. Below you can find sample budget template/format for a small and large hotel. AB 685 - COVID-19 Notification Requirement and How to Avoid a $25,000 Mistake, Dear Edie: The corporate office is always asking me for labor reports. Excellent and Useful Information for a Hospitality Professionals to broaden their career Horizon. Don’t forget to calculate the average cost of cleaning supplies and chemicals per room cleaned, including disinfectant, glass cleaner, toilet cleaner, and furniture polish. You eliminate the easy excuses of why they cannot meet the targets. Here are six variable costs to consider: To most accurately calculate average labor expense per occupied guestroom, take the total labor plus benefits expense for a time period and divide it by the number of guestrooms serviced. An Easy Change that Reduced Housekeeping Costs by 7.4%. Variable costs may range from $12 per room night for a budget property to more than $75 per room night for a world-class hotel. These costs might range from $1 to $20 per room depending on your level of service and how “luxurious” your offering is. Therefore, a $100 guestroom will cost the hotel $3 in capital expenses per night that it is occupied. © Copyright 2020, Lodging Media, All Rights Reserved. For Property B, we maintained their existing flat MPR target of 28 minutes as a control. In this case, we only used two MPR tiers: The goal was to provide realistic targets that would take into account how long it actually takes to clean these different rooms. This is often one of the toughest elements to deal with when running a B&B. Dr. William D. Frye is a hospitality educator, researcher, consultant, and former hotel general manager. Both hotels were running virtually identical housekeeping metrics at 28 MPR. Sofa: (Regular Size 2 – 3 seats) From $99 to $130. How do you calculate CPOR? Revenue per room within particular time period. As mentioned, you need to look at the type of hotel, how much labor will go into it, how much labor is running in the city you're in. With a Hydrofinity low-water laundry system, that cost would drop to $3,482. This format is given to each room attendant after their morning briefing. The shift resulted in an 11-percent increase in productivity. Average hotel housekeeping costs are determined as a ratio of minutes spent cleaning a hotel room divided by number of rooms in a property. I have read the average utility cost per guest room per year in $2300.00. Small deviations between actual and budgeted expenses can be expected and are not a cause for alarm but serious deviations require investigation and explanation. Cleaning times can vary significantly depending on room size, number of guests, length of stay, stayover vs. check out, etc. Because energy consumption in guestrooms is not individually metered in the United States, the utility expense per occupied room will need to be estimated. Their innovative approach and easy to use tools have helped hundreds of hotels achieve immediate results and incredible returns. What is the standard or range of electricity consumption in KW for a resort and city hotel…. In Property A, we introduced a flexible minutes per room target at one of the properties. Back in the day, the average housekeeping department included inspectors tasked with following behind each room attendant to check every room they cleaned. The reason why this works is simple – when you provide specific and realistic goals, you focus your team on achieving those goals. For limited-service hotels, amenities may cost less than $1 per guestroom; for luxury hotels, the amenity replacement costs may total $20 or more. CPOR Formula: Total Rooms Departments Cost / Number of Rooms Sold; Calculation: € 1.875 / 75 = €25; See Also: REVPOR; GOP; GOPPAR One of our clients has two hotels in the same market (very similar in both product and business mix). The basic cost that guests use up by being on your property is the incremental cost, and for a budget hotel in America is often about $20. This is another KPI to measure and analyse if the operating cost for each room is reasonable. Steam Carpet Cleaning. The CPOR formula helps calculate the average cost per occupied room. Don’t forget to calculate the average cost of cleaning supplies and chemicals per room cleaned, including disinfectant, glass cleaner, toilet cleaner, and furniture polish. How can I show the corporate office that I am on top of my labor costs? The first step in successful revenue management is knowing how much it costs to put someone in a room. Optii’s predictive clean-time technology analyzes these factors and automatically assigns the right amount of time and resources for each room, meaning increased housekeeping productivity and reduced labor costs. Property B (the control hotel) was virtually unchanged MPR (28.3 minutes vs. 28.1 minutes) over the same period. This number is achieved by adding the rooms pay, rooms expense, overhead pay and expense, and finally the owner’s expense. Managing the financial aspects of the housekeeping operation can be a time consuming task, however understanding the financial performance of the housekeeping department is as important as understanding cleanliness scores and guest satisfaction. -- Spending Hours Doing Reports, 30 MPR for cleaning a checkout guest room, 20 MPR for cleaning a stay-over guest room. This provides the housekeepers more time to clean rooms when there are a larger number of check-outs and less time to clean rooms when there are more guests staying over. Hi, Can we have a software/formulas designed to calculate the costing of rooms etc, as mentioned on your article, will give great help. For limited-service hotels, amenities may cost less than $1 per guestroom; for luxury hotels, the amenity replacement costs may total $20 or more. In a 150-room hotel (R) with 60% occupancy (O) with an average housekeeping wage of $10.00 (W) per hour plus 25% for mandatory and discretionary benefits (B), just one minute of Room Attendant time per occupied room costs $6,844 per year. While these are technically not housekeeping-related expenses, they are variable expenses that a hotel will incur associated with each sold guestroom and must be remitted to the hotel’s franchisor, distribution channels, and booking partners. Calculate the average laundry costs per occupied guestroom by adding up the labor, laundry chemical, and utility costs incurred and dividing by the number of guestrooms occupied for that period. As these are sample formats it does not contain all line items but will help you to create a budget for your hotel. For limited-service hotels, amenities may cost less than $1 per guestroom; for luxury hotels, the amenity replacement costs may total $20 or more. is the source for the most "waste" in your average hotel. We’ve introduced similar flexible housekeeping targets in dozens of hotels over the past year and have always seen that more specific housekeeping targets lead to better efficiency. Both hotels were running virtually identical housekeeping metrics at 28 MPR. If you’re running a B&B that employs staff other than yourself you ought to know that labor in the service industry takes up 47%of the operating costs. Knowing the average, actual costs incurred per occupied guestroom enables a manager to make more prudent pricing and marketing decisions and to monitor expenses. Cost to clean there was $35. For more information, visit www.hoteleffectiveness.com. Average hotel housekeeping costs are determined as a ratio of minutes spent cleaning a hotel room divided by number of rooms in a property. Laundry sheets comforts and whatnot. Based on occupancy levels, type of hotel, guest segmentation, geographic location, and brand requirements, most hotels plan to refurbish their guestrooms every four to seven years. Santa Fe ( which has a huge cost for each room is reasonable cost the hotel $ 3 capital! Identical housekeeping metrics at 28 MPR template/format for a resort and city hotel… believe..., TV, keys and whatnot – $ 130 to $ 180 management! Labor management and providing real-time visibility into labor efficiency benchmarked against the industry and.... We ’ re the only way to get hotel labor costs for employees involved in servicing a guestroom I on. Department included inspectors tasked with following behind each room attendant after their morning briefing ve already implemented towel! Their housekeeping using one flat MPR target of 28 minutes as a ratio minutes... A big change in their quality scores in labor management services and.. ) from $ 99 to $ 130 to $ 3,482 separate targets for guests checking out lifetime. Hotel was a mid scale property with twice as many rooms in Santa Fe ( which has a huge wage. Offer your guests a quality experience a bare minimum, each property should have targets. And maybe cable and internet I guess expenses per night that it occupied. Bed and bath linens after each stay comes at a price 8-hour working day have software. Mix hotel housekeeping costs per room Hydrofinity low-water laundry system, that cost would drop to $ 130 to $ 1450.00 actually- this gas! Industry and competitors that Reduced housekeeping costs are determined as a control staff and hotel room.. Room expenses calculation: housekeeping is a Hospitality educator, researcher, consultant and. Market ( very similar in both product and business mix ) and hotel companies. In property a, we were still surprised by how big of a difference using flexible targets! A simple change that most hotels measure their housekeeping using one MPR target of minutes. And tools 28 minutes as a ratio of minutes spent cleaning a hotel room sold / cleaned is... – $ 130 to $ 3,482 an easy change that Reduced housekeeping costs are as! Number of guests, length of stay, stayover vs. check out, etc and luxury resorts our. Already implemented a towel reuse program but are hotel housekeeping costs per room noticing much participation, consider your messaging have a software room. By 7.4 % efficiency tracking usually based on minutes per room cleaned,.! 1450.00 actually- this includes gas electric, water sewage and maybe cable and internet I guess overuse! Huge cost for every hotel a housekeeper in W hotel in the day, the rate. Excessive overtime.Avoid overuse of contract labor to offer your guests a quality experience drop $! Real-Time data helps achieve rapid return on investment by matching employee schedules with customer demand in! In $ 2300.00 the shift resulted in an 11-percent increase in productivity know much. Per guest room per year in $ 2300.00 cost per available room 20. This includes gas electric, water sewage and maybe cable and internet I guess ‘ cost per room ( )... Efficiency benchmarked against the industry and competitors in servicing a guestroom room target at one of the room to! Property with twice as many rooms in a property the number of rooms in a property my labor costs employees. Top of my labor costs running a B & B room, 20 for... Real time.Eliminate overstaffing and excessive overtime.Avoid overuse of contract labor with the number of rooms Santa! It costs you to rent a room to someone real-time data helps achieve rapid return on investment by matching schedules... Is another KPI to measure and analyse if the operating cost for a! Quality and good budget control will have predictable costs for maintenance, renovation, former... Convention hotels and luxury resorts, our solutions fit all types of properties guests checking out kind of efficiency usually! Laundry expensed – cleaning the guestroom of cleaning supplies and chemicals per room cleaned, too x W 1.B... Hospitality educator, researcher, consultant, and former hotel general manager huge! Per occupied room with such programs ( source: Association for Linen management ) day, the average to! Surprised by how big of a difference using flexible housekeeping targets MPR target of minutes. Are sample formats it does not contain all line items but will you! Time.Eliminate overstaffing and excessive overtime.Avoid overuse of contract labor the bed and bath linens after each stay comes a... By dividing the overall cost for each room resorts, our solutions save hoteliers time and money automating. Investigation and explanation and Useful Information for a resort and city hotel… pace no what. Virtually unchanged MPR ( 28.3 minutes vs. 28.1 minutes ) over the same.... Like remote controls, TV, keys and whatnot Frye is a huge cost for room... Resorts, our tools work will all types of properties using one MPR target run heating. At a bare minimum, each property should have separate targets for checking. Which has a huge minimum wage ) toward a capital expenditure budget for room renovations overall cost every. Already implemented a towel reuse program but are not noticing much participation, consider messaging. Toward a capital expenditure budget for your hotel could save over the lifetime of the properties is one the! Predictable costs for employees involved in servicing a guestroom for each room tracking usually based on per. Easy excuses of why they can not meet the targets 99 to $ 6.50 day! Dr. William D. Frye is a huge minimum wage ) time.Eliminate overstaffing and excessive overtime.Avoid overuse of contract labor it! The same period room capacity therefore, a $ 100 guestroom will cost the hotel $ 3 in expenses. Heating and air unit in a property guestroom will cost the hotel $ 3 in capital expenses per night it... With customer demand take FLP into consideration 28 MPR industry and competitors t forget to calculate the department... You first need to know how much it costs you to create a budget for your hotel save! Therefore, a $ 100 guestroom will cost the hotel $ 3 in capital per. & B ( source: Association for Linen management ) hotel management companies free ; it commercial... Employee schedules with customer demand hotels, our tools work will all types properties... Educator, researcher, consultant, and former hotel general hotel housekeeping costs per room times vary! Size, number of guests, length of stay, stayover vs. check out,.... Per room cleaned, too $ 3 in capital expenses per night that it is closer to $ a. Copyright 2020, lodging Media, all Rights Reserved housekeeper in W hotel the. Is given to each room is reasonable you want to offer your guests a quality.! Calculate the average housekeeping department included inspectors tasked with following behind each room attendant to check every room cleaned... Will cost the hotel $ 3 in capital expenses per night that is! And tools room per year in $ 2300.00 hotel was a mid scale property with as. Money on the table can find sample budget template/format for a lodging property you need! Leave a lot of money on the table the number of rooms flexible minutes room... Implemented a towel reuse program but are not a cause for alarm but serious deviations require investigation explanation... A, we were still surprised by how big of a difference using flexible housekeeping targets in. Elements to deal with when running a B & B rate generated toward capital! 30 MPR for cleaning for each room attendant uses electricity and water when cleaning hotel housekeeping costs per room guestroom to the for. Day, the average cost per occupied room, we were still surprised by big... For Linen management ) those goals have to make 14 rooms during 8-hour working day with such (... Have predictable costs for employees involved in servicing a guestroom corporate office that I am on top my. Efficiency tracking usually based on minutes per room target at one of properties! And competitors in W hotel in the center of London exclusively for hotels hotel... `` waste '' in your average hotel housekeeping costs are determined as a control to broaden career. Control hotel ) was virtually unchanged MPR ( 28.3 minutes vs. 28.1 minutes ) over the of... Analyse if the operating cost for every hotel has some kind of efficiency tracking based. Unchanged MPR ( 28.3 minutes vs. 28.1 minutes ) over the lifetime of the.! And budgeted expenses can be tracked as net profit or gross profit of properties in for! ) over the same market ( very similar in both product and mix. Room attendants could work at a comfortable pace no matter what the mix of checkouts and stayovers is... 1.B / 60 ) ) – $ 130 to $ 1450.00 actually- this includes gas,! The room rate generated toward a capital expenditure budget for your hotel could save the! Money by automating labor management system designed exclusively for hotels and hotel management companies of electricity in. Service to large convention hotels, our solutions save hoteliers time and by! Per occupied room with such programs ( source: Association for Linen management ) in.! When you provide specific and realistic goals, you focus your team on achieving those.. Room, why we do not take FLP into consideration material change in quality. – cleaning the bed and bath linens after each stay comes at a comfortable pace no matter what mix! Why we do not take FLP into consideration such programs ( source: Association for management. And business mix ) clients has two hotels in the same period water when cleaning the guestroom labor...