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Hotel's Target Net Income

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Apr 29, 2024, 2:23:53 PM
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Jul 26, 2015, 11:27:21 PM
`"Hotel's Target Net Income" = "Owner's Investment"*"Required Rate of Return"`
`(oi) "Owner's Investment"`
`(rrr)"Required Rate of Return"`
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A hotel's target total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is found on a hotel's income statement and is an important measure of how profitable the hotel is over a period of time. The measure is also used to calculate earnings per share.

Resource:

  • Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
  • "Net Income (NI) Definition | Investopedia." Investopedia. N.p., 24 Nov. 2003. Web. 07 Aug. 2015.

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