Net Income for Hotels
`"Net Income for Hotels" = "Operated Department Income (Rooms)" + "Operated Departments Income (Excluding Rooms)" - "Undistributed Operating Expenses" - "Non-Operating Expenses" - "Taxes" `
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A hotel's 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.
