Hotel Industry Payroll Costs: What's the Ideal Percentage of Total Revenue?

I have a query: What is an ideal payroll cost supposed to be against total revenue in the hotel industry?

Thanks

Payroll cost in the hotel industry

Payroll cost is generally 3-8% of hotel revenue, but it depends on the type of hotel, location, and facilities. For example, luxury hotels have more staff, but their charges are much higher, so the ratio drops.

Factors affecting payroll costs

Also, you need to differentiate between locations. The cost depends on the availability of trained staff and what you need them to do.

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