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What is the typical gross profit margin of a three-star hotel?
The hotel's operation first lies in the guarantee of room occupancy. Without a stable and certain limited occupancy rate, the hotel operation can not talk about high profitability. Three-star hotel room rates are generally between 100-250. Single room potential cost may go to 25-55 or so, single room operating costs almost 20-100 or so, this is the average cost of each room. According to the different positioning, decoration standards, service specifications of three-star hotels, the cost will generally account for about 45% -60% of the price. That gross profit may reach 40% -55%, but must ensure a certain amount of occupancy rate, if the occupancy rate is less than 50% of the general business hotel is not making money. Therefore, to achieve a certain occupancy rate, in order to ensure the level of profit.