How to calculate the return on investment of express hotels?

Return on investment (ROI)= annual profit or average annual profit/total investment × 100%.

Calculate the return on investment after purchase and re-lease = monthly rent × 12 (month)/selling price.

Calculate the return on investment after buying and selling = (selling price-buying price)/buying price.

For example, there is a street shop with an area of about 50 square meters and a price of about 2 million. The monthly rent of the same property around this property is about 400 yuan/square meter, that is to say, if this shop is bought and successfully rented, the new owner may get a monthly rent of 20,000 yuan.

Return on investment of this property = 20,000 yuan ×12/2 million yuan. Through calculation, the return on investment of this property is 12%. If the investor releases the property and trades with 2 150,000 yuan, the return on investment is = (215-200)/200,000.

Extended data:

1, internal rate of return method

Real estate investment formula: accumulated total income/accumulated total investment = monthly rent × accumulated rent months during the investment period/(mortgage down payment+insurance premium+deed tax+overhaul fund+other investments such as furniture+accumulated mortgage payment+accumulated property management fee) = internal rate of return.

The above formula takes mortgage as an example; Do not consider interest payment and agency expenses; Accumulated income and investment are considered during the investment period.

2. Simple evaluation method

The basic formula is that if the annual income of the property is × 15 = the purchase price of the property, the property is considered to be worth the money. This is a simple method for an international professional financial management company to evaluate the investment value of real estate.

Any real estate investment, investors hope to have a reasonable return, even an ideal return. If investors want to judge whether their investment is valuable, they must look at the return on investment of real estate.

Baidu Encyclopedia-Return on Investment