How to calculate the hotel management company’s share ratio?

1. Determine total revenue: Total revenue includes all revenue of the hotel, including room revenue, catering revenue, conference revenue, etc.

2. Determine the basic expenses: The basic expenses usually include basic expenses such as hotel rent, water and electricity bills, and employee salaries. The hotel management company and the owner need to agree on a range of base fees.

3. Determine the sharing ratio: After determining the total revenue and basic expenses, the hotel management company and the owner need to agree on the sharing ratio. Normally, the hotel management company’s share ratio is between 5% and 20%, depending on the hotel’s size, brand, market and other factors.

4. Calculate the share amount: Calculate the share amount of the hotel management company based on the share ratio. The share amount is equal to the total revenue minus the basic expenses, multiplied by the share ratio.

5. Distribute the share amount: The share amount is distributed according to the share ratio and according to the agreed time period, usually monthly or quarterly.