If you’ve already implemented a towel reuse program but are not noticing much participation, consider your messaging. Average hotel housekeeping costs are determined as a ratio of minutes spent cleaning a hotel room divided by number of rooms in a property. He is the co-author of AHLEI’s housekeeping textbook Managing Housekeeping Operations. Cleaning cost per room was $26. Staff to Room Ratio is one of the critical factors that determine an optimum level of balance between permanent staff and hotel room capacity. What Are Your True Variable Costs Per Occupied Room? Laundry sheets comforts and whatnot. Both hotels already used Hotel Effectiveness Labor Management, which includes automated reporting on the performance for each housekeeping attendant; because of this there was no additional management time for either property to track their efficiency. I work as a housekeeper in W Hotel in the center of London. The reason why this works is simple – when you provide specific and realistic goals, you focus your team on achieving those goals. We recently put this recommendation to the test for tracking housekeeping productivity and saw a big change in performance. ‘Cost per room sold / cleaned’ is an important measure for the housekeeping department. According to Bjorn Hanson, associate professor at New York University's Tisch Center for Hospitality, the cost of cleaning a high-end of luxury room is approximately £14 per … (The formula is R x O x 365 x W x 1.B / 60). This is another KPI to measure and analyse if the operating cost for each room is reasonable. A Hotel constructed with appropriate quality and good budget control will have predictable costs for maintenance, renovation, and operation. Therefore, a $100 guestroom will cost the hotel $3 in capital expenses per night that it is occupied. Hotel Effectiveness® is the only complete labor management system designed exclusively for hotels and hotel management companies. This KPI is calculated by dividing the overall cleaning costs with the number of rooms. 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. 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. Cost to clean there was $35. Neither hotel saw any material change in their quality scores. Revenue per room within particular time period. CPOR stands for 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. What is the standard or range of electricity consumption in KW for a resort and city hotel…. 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. Even so, we were still surprised by how big of a difference using flexible housekeeping targets made in this case. In the above-simplified budget for this 295 room hotel, we can see all the expenses on an annualized basis is just north of $24 million. Our advanced technology and real-time data helps achieve rapid return on investment by matching employee schedules with customer demand. Excellent and Useful Information for a Hospitality Professionals to broaden their career Horizon. While using one MPR target for all rooms is easy, this approach can also leave a lot of money on the table. Cleaning times can vary significantly depending on room size, number of guests, length of stay, stayover vs. check out, etc. Their innovative approach and easy to use tools have helped hundreds of hotels achieve immediate results and incredible returns. One of our clients has two hotels in the same market (very similar in both product and business mix). Share data in real time.Eliminate overstaffing and excessive overtime.Avoid overuse of contract labor. 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. The typical room attendant needs 20-30 minutes to properly clean a room, and if the hotel is forecasted to fill 3000 room nights this upcoming month (this number ballparked after considered total number of available rooms times number of nights times forecasted occupancy), then that amounts to 1000-1500 hours of labor, which at a wage of $20 per hour is $20,000-$30,000 of total cost for the month. Most hotels measure their housekeeping using one flat MPR target. 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. These costs might range from $1 to $20 per room depending on your level of service and how “luxurious” your offering is. In Property A, we introduced a flexible minutes per room target at one of the properties. In Property A, we introduced a flexible minutes per room target at one of the properties. How do you calculate CPOR? An Easy Change that Reduced Housekeeping Costs by 7.4%. We’re the only way to get hotel labor costs 100% perfect. Dr. William D. Frye is a hospitality educator, researcher, consultant, and former hotel general manager. Say at 12 cents a KW. Price Per Room From: $40 to $80: Price Per Living Room: $30 to $40 (Stairs)From: $2 to $4 per step. This is often one of the toughest elements to deal with when running a B&B. 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. Large Sofa (3 – 5 seats) – $130 to $180. 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. For limited-service hotels, amenities may cost less than $1 per guestroom; for luxury hotels, the amenity replacement costs may total $20 or more. America’s Best Franchising Names VP, Franchise Development, https://lodgingmagazine.com/wp-content/uploads/2020/08/Make-It-Work-1-Cleanliness-Lo.mp4, AHLA Forum: Experts See Recovery on the Horizon, Hotstats: U.S. Hotel Industry Breaks Even in December. Since 2007, Hotel Effectiveness has grown into an industry leader in labor management services and tools. Don’t forget to calculate the average cost of cleaning supplies and chemicals per room cleaned, too. Hi, Can we have a software/formulas designed to calculate the costing of rooms etc, as mentioned on your article, will give great help. Laundry expensed – Cleaning the bed and bath linens after each stay comes at a price. Virtually every hotel has some kind of efficiency tracking usually based on minutes per room (MPR). Upholstery Cleaning. 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. 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. Our solutions save hoteliers time and money by automating labor management and providing real-time visibility into labor efficiency benchmarked against the industry and competitors. Average hotel housekeeping costs are determined as a ratio of minutes spent cleaning a hotel room divided by number of rooms in a property. Below you can find sample budget template/format for a small and large hotel. The CPOR formula helps calculate the average cost per occupied room. Room attendants could work at a comfortable pace no matter what the mix of checkouts and stayovers. This can be tracked as net profit or gross profit. That’s $10,444 in savings for just one year—imagine what your hotel could save over the lifetime of the machines. The shift resulted in an 11-percent increase in productivity. 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. This format is given to each room attendant after their morning briefing. Because energy consumption in guestrooms is not individually metered in the United States, the utility expense per occupied room will need to be estimated. https://www.hotelmanagement.net/operate/examination-hotel-labor-costs I believe it is closer to $1450.00 actually- this includes gas electric, water sewage and maybe cable and internet I guess. When guests occupy a room, they turn on the lights, watch TV, take hot showers, run the heat or air conditioning, recharge electronics, and more. Sofa: (Regular Size 2 – 3 seats) From $99 to $130. From economy hotels to large convention hotels and luxury resorts, our solutions fit all types of properties. Determine the average cost to replace “consumable” amenity items such as soap, shampoo, conditioner, lotion, toilet paper, tissues, and coffee. Also utilities are charged at commercial rate. How can I show the corporate office that I am on top of my labor costs? Room Attendant Daily Assignment Sheet for Housekeeping. For limited-service hotels, amenities may cost less than $1 per guestroom; for luxury hotels, the amenity replacement costs may total $20 or more. For Property B, we maintained their existing flat MPR target of 28 minutes as a control. 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. As these are sample formats it does not contain all line items but will help you to create a budget for your hotel. © Copyright 2020, Lodging Media, All Rights Reserved. Housekeeping is a huge cost for every hotel. Hotels spend about $10 per room for cleaning, according to Emma Atanasoska, a former hotel manager who publishes the industry blog HotelReader.com. Here's an example: Say a typical 250+ room hotel spends $13,926 a year in water and sewage costs on their in-house laundry operation. 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. Hoteliers generally save up to $6.50 a day per occupied room with such programs (source: Association for Linen Management). -- Spending Hours Doing Reports, 30 MPR for cleaning a checkout guest room, 20 MPR for cleaning a stay-over guest room. 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. To properly manage revenue for a lodging property you first need to know how much it costs you to rent a room to someone. You want to offer your guests a quality experience. I have read the average utility cost per guest room per year in $2300.00. Similarly, the room attendant uses electricity and water when cleaning the guestroom. In this case, we only used two MPR tiers: 30 MPR for cleaning a checkout guest room; 20 MPR for cleaning a stay-over guest room CPOR Formula: Total Rooms Departments Cost / Number of Rooms Sold; Calculation: € 1.875 / 75 = €25; See Also: REVPOR; GOP; GOPPAR Property B (the control hotel) was virtually unchanged MPR (28.3 minutes vs. 28.1 minutes) over the same period. Tracking the overall cost for cleaning for each room. According to … For limited-service hotels, amenities may cost less than $1 per guestroom; for luxury hotels, the amenity replacement costs may total $20 or more. Both hotels were running virtually identical housekeeping metrics at 28 MPR. I would guess the average cost to run a PTAC unit in a guest room is around $35.00 per month but this is a guess using 1200watts X 8 hours of run time a day that is the A/C or heat running 20 minutes of every hour every day of the month at 12 cents per kilowatt. The first step in successful revenue management is knowing how much it costs to put someone in a room. 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. Both hotels were running virtually identical housekeeping metrics at 28 MPR. This number is achieved by adding the rooms pay, rooms expense, overhead pay and expense, and finally the owner’s expense. what is the average cost to run a heating and air unit in a standard 325 square feet hotel room. Trust but verify. From economy and select service to large convention hotels, our tools work will all types of properties. Cleaning cost per room. Allocate an average of 3 percent of the room rate generated toward a capital expenditure budget for room renovations. Revenue per room. Reasons for this: Not a GM's primary skill set Scope of work can vary from room-to-room and day-to-day making it difficult to measure efficiency Hotels use dated control methods lie "minutes per room" as a way… Back in the day, the average housekeeping department included inspectors tasked with following behind each room attendant to check every room they cleaned. Here’s a simple change that most hotels can benefit from: Housekeeping is a huge cost for every hotel. Knowing the average, actual costs incurred per occupied guestroom enables a manager to make more prudent pricing and marketing decisions and to monitor expenses. Taxes, insurances, staff salary, maintenance plus most travelled steals things like remote controls, TV, keys and whatnot. Small deviations between actual and budgeted expenses can be expected and are not a cause for alarm but serious deviations require investigation and explanation. Profit per room. Please can I have a software on room expenses calculation. We always recommend that every hotel should have multiple housekeeping targets. While calculating the Cost per available room , why we do not take FLP into consideration ? 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. At a bare minimum, each property should have separate targets for guests staying over and for guests checking out. If a guestroom is occupied, the bed and bath linens will need to be laundered after the guest checks out or after a specified number of days occupancy. Often we find the rooms, or housekeeping, dept. is the source for the most "waste" in your average hotel. For more information, visit www.hoteleffectiveness.com. We have to make 14 rooms during 8-hour working day. Motel is not free; it has commercial mortgage on it. 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. Steam Carpet Cleaning. With a Hydrofinity low-water laundry system, that cost would drop to $3,482. However, you also do… Keep in mind that you only calculate the housekeeping labor costs for employees involved in servicing a guestroom. My second hotel was a mid scale property with twice as many rooms in Santa Fe (which has a huge minimum wage). 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. Total profit divided by number of hotel rooms. The executive housekeeper’s ability to control housekeeping expenses will be evaluated in terms of his/her ability to maintain the cost per occupied room expected for each category. 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. Sectional Sofa – $180 to $220. It’s a luxury 5-star hotel. Excessive overtime.Avoid overuse of contract labor properly manage revenue for a small and large hotel your True Variable per! Hoteliers generally save up to $ 3,482 Media, all Rights Reserved cleaning supplies and chemicals per room target one! Hours Doing Reports, 30 MPR for cleaning for each room cost of supplies... Out, etc for cleaning for each room attendant after their morning briefing all! Into an industry leader in labor management services and tools providing real-time into! Targets made in this case stayover vs. check out, etc D. Frye is a Hospitality educator,,! 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