What is the gross profit margin of a three-star hotel?

The operation of the hotel first lies in the guarantee of room occupancy rate. Without a stable and limited occupancy rate, hotel management cannot have high profits. The price of a three-star hotel is generally between 100-250. The diving cost of a single room may be around 25-55, and the operating cost of a single room is about 20- 100, which is the average cost to each room. According to the different positioning, decoration standards and service specifications of three-star hotels, the cost will generally account for about 45%-60% of the whole price. The gross profit may reach 40%-55%, but a certain occupancy rate must be guaranteed. If the occupancy rate is less than 50%, it is generally unprofitable to run a hotel. Therefore, it is necessary to reach a certain occupancy rate to ensure the profitability.