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Q. How is Rent Calculated?
As explained in more detail in the unit rental agreement, the hotel manager sets the room rates for each unit, and collects the room revenues paid by persons staying in an owner's room. The net revenue generated from the guestroom is paid to you by the hotel management company. Net revenue equals the revenue paid by a guest minus a management fee, an operating expenses fee and a reserve fee for future capital expenses. Operating expenses for the room include marketing and promotion expenses, housekeeping, linens, guest supplies, reservations, credit card commissions and the like. The hotel manager will keep books and records for each room owner who elects to enter into the voluntary rental program and will pay 100% of the net revenues based on the revenues of that room (but not including any food and beverage, meetings, telecommunications, pay-per-view or other revenues) every month. More information on the calculation of rent is contained in the unit rental agreement.