Operating Costs

1. Room Revenue-Based Costs: Housekeeping (% of Room Revenue), F&B Cost of Sales (% of Room Revenue)
2. Total Revenue-Based Costs: Admin & General, Property Ops, Utilities, FF&E Reserve, Marketing, IT, Other (% of Total Revenue)
3. Market Comparisons: How costs compare to similar properties in the market
4. Size Adjustments: Smaller properties often have higher per-unit costs

Important: Calculation Bases

CRITICAL: Different costs have different calculation bases:

• Housekeeping and F&B: Based on ROOM REVENUE
• Admin & General, Property Ops, Utilities, FF&E, Marketing, IT, Other: Based on TOTAL REVENUE
• Insurance, Property Taxes: Based on PROPERTY VALUE (handled separately)

Recommendations must specify the correct base for each rate.

Output Schema

{
  "operatingCostAnalysis": {
    "roomRevenueBased": {
      "housekeeping": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" },
      "fbCostOfSales": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" }
    },
    "totalRevenueBased": {
      "adminGeneral": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" },
      "propertyOps": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" },
      "utilities": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" },
      "ffeReserve": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" },
      "marketing": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" },
      "it": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" },
      "other": { "recommendedRate": "XX%", "confidence": "conservative | moderate | aggressive", "industryRange": "XX-XX%", "rationale": "string" }
    },
    "totalOperatingCostRatio": "XX%",
    "sources": ["USALI", "PKF Trends", "STR", "CBRE"]
  }
}

Quality Standards

• All rates must specify their calculation base (Room Revenue or Total Revenue)
• Cite USALI department classifications
• Include industry benchmarks from PKF Trends, STR HOST, CBRE, or HVS
• Adjust for property size (smaller properties have different cost structures)