Stevehoward Posted July 19, 2004 Share Posted July 19, 2004 We are currently looking to buy a hotel just outside Toulouse and have received brief details of the hotel's turnover. Firstly, it states that they take 27,000 euros for breakfasts for the year with the cost for supplying this at 5,750 euros. Looks like a terrific mark up to me, could this be right?Secondly, the hotel is showing a profit of 117,000 euros before tax and after deducting all overheads and runing costs. I have tried and failed to find what the tax burden would be on this sum and wonder if anyone could give me an idea. I will have to consult an accountant in the near future but do not want to start racking up charges until we see the property early next month.Many thanksSteve Howard Link to comment Share on other sites More sharing options...
Suzyq Posted July 22, 2004 Share Posted July 22, 2004 >We are currently looking to buy >a hotel just outside Toulouse >and have received brief details >of the hotel's turnover. >Firstly, it states that they >take 27,000 euros for >breakfasts for the year with >the cost for supplying this >at 5,750 euros. Looks >like a terrific mark up >to me, could this be >right? Food does give a good mark up especially a simple meal like a breakfast. There are questions to be asked:How many rooms and what capacity do they have and what % bookings over the year.What do they serve (possibly just coffee, roll, butter and jam)and how much do they charge for a breakfast - at an average of say 5euros a head this is nearly 15 a day throughout the year at a cost of just over 1euro; does the hotel have this capacity or number of lettings? Have you seen the tarif charges - you can then work out the number and the profit from each one and what they serve to see if it is realistic and whether it ties in with the room lettings - it should equal or be less if breakfast is charged separately. The only time you can have more breakfasts than room capacity will be if they serve it to the general public as well as residents.>>>Secondly, the hotel is showing a >profit of 117,000 euros before >tax and after deducting all >overheads and runing costs. I >have tried and failed to >find what the tax burden >would be on this sum >and wonder if anyone could >give me an idea. I >will have to consult an >accountant in the near future >but do not want to >start racking up charges until >we see the property early >next month. We estimate at present that our social charges and tax burden to be around 54%; but the actual tax will depend on your own family circumstances and the higher rates kick in quite quickly as profits go up.>>Suze Link to comment Share on other sites More sharing options...
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