1. FARM TOURISM

2. HUBBART FORMULA
RATE OF RETURN+OPERATING EXPENDITURE
365XNUMBER OF ROOMSXESTIMATED%OCCUPANCY

3. RATE OF RETURN(R.O.I)
 CALCULATE THE HOTELS DESIRED
PROFIT BY MULTIPLYING THE DESIRED
RATE OF RETURN BY THE OWNER’S
INVESTMENT

4. OPERATING
EXPENDITURE
 OPERATING EXPENDITURE CONSIST OF
VARIOUS FIXED CHARGES LIKE
 MANAGEMENT FEES.
 HUMAN RESOURCES
 OTHER MANAGEMENT CHARGES.

5. OPERATING
EXPENDITURE
 SALARY AND PAYROLL RELATED.
 ELECTRICITY
 DEPRICIATION.
 INTEREST.
 ROOM AMMENITIES

6. OPERATING
EXPENDITURE
 LAUNDRY
 TELEPHONE
 MARKETING
 PROPERTY TAX

7. OPERATING
EXPENDITURE
 SALARY AND PATROLL RELATED
EXPENDITURE
 (5X4000X12)=2,40,000.
 ELECTRICTIY 12X4000 = 48,000.
 DEPRICIATION@5%OF 30,00000.
 INTEREST OF 12%@ON 5,00,000 LOAN =
60,000.
 ROOM AMMENTIES 100X6X365 = 2,19,000.

8. OPERATING
EXPENDITURE
 LAUNDRY = 15,000.
 TELEPHONE = 5000.
 MARKETING = 20,000.
 PRORPERTY TAX = 10,000.
 TOTAL EXPENDITURE = 7,67,000.

9. DESIRED PROFIT
 R.O.I XOWNER’S INVESTMENT
 30,00,000 X 20% = 6,00,000.

10. TOTAL NUMBER OF GOODS SOLD
 365 X10 X 60% = 2190.
 (365X NUMBERS OF ROOMSX ESTIMATED %OCCUPANCY)

11. AVERAGE ROOM RATE
RATE OF RETURN+OPERATING EXPENDITURE
365XNUMBER OF ROOMSXESTIMATED%OCCUPANCY
 6,00,000+7,67,000
2190
=RS 624/-