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Profits and risks of opening a hotel

According to the query of joining stars, the profit and risk of opening a hotel are as follows:

Profit:

Room: the net profit can reach 51%. After a room is opened, what the guests consume for one night is nothing more than water, electricity and consumables, plus cleaning costs, breakfast costs and management costs.

catering: net profit is 21%. As far as catering is concerned, in fact, most hotels are not doing very well, which is also one of the management difficulties of many hotels.

entertainment and leisure: the net profit is 51%. Such as tea houses and KTV, the gross profit is still quite high. The direct cost of a cup of tea accounts for 11-21%, and other costs come from labor, decoration depreciation and energy consumption. We should know that the food, use and clothes of hotel employees must meet the requirements of hotel image, and at the same time, this will also bring about an increase in the cost of the hotel.

Risk:

The initial investment of hotels is large: there are millions of small hotels and hundreds of millions of large hotels. These investments will not be repaid until the opening of the business. Although the hotel has large investment and slow payback period, it has great social influence. By repairing the hotel, the image of enterprises and individuals can be enhanced. The hotel is a social platform.

poor liquidity: the hotel property is rented or held. Although there is a certificate, it is difficult to sell the hotel directly except mortgage it to the bank.