Key points
- Count completed services and state the denominator.
- Separate direct costs, rework and shared expenses without double counting.
- Compare budget and actual costs with equivalent service scope.
Choose the service and reporting period
The executive housekeeper counts departure cleans and stayovers actually completed during the period. A declined clean does not automatically count as a stayover service. A towel delivery can become a separate service category if it represents material activity. A room returned for correction remains one original service with a rework cost, not a second departure clean.
Finance sets the boundary: guest rooms only, public areas recorded separately, and amounts excluding recoverable taxes or following the accounting convention selected. Keep that convention consistent across inputs. The discussion of hidden housekeeping costs helps identify missing expense categories; this model assigns those expenses to delivered services.
Separate service cost from a broader CPOR
If your cost per occupied room, or CPOR, covers a broader expense scope, keep it as a separate calculation: expenses within the selected scope / occupied room nights. Its numerator may include costs beyond housekeeping. This model instead counts completed housekeeping services. An occupied night without cleaning does not create a completed stayover service, and rework does not add an occupied night. Display the scope, unit and denominator beside each result so the two measures are not compared as though they represent the same activity.
Build an input sheet
| Input | Unit and internal source | Check before calculation |
|---|---|---|
| N: services completed by type | Count from activity records | Separate departures, stayovers and other services |
| t: average direct time | Minutes per service, representative observation | Exclude rework recorded elsewhere |
| h: loaded hourly labour cost | Euros per hour, finance | Match its definition to the model’s hours |
| L, C, P | Linen, supplies and contractor euros per service | Identify what P already includes |
| R | Total rework cost for each service type | Additional labour and materials only |
| A | Shared period expenses, euros | Supervision and equipment not allocated elsewhere |
If a contractor charges an inclusive rate, enter it as P and set the components already included in that rate to zero. For an internal team, P can be zero. A missing input remains a labelled assumption; it should not silently become zero. Ask the invoice owner to confirm inclusions before interpreting the result.
Use the complete formula
For each type j, departure D or stayover S: direct unit cost Uj = (tj / 60 × h) + Lj + Cj + Pj + (Rj / Nj). Time is in minutes and amounts are in euros. Nj must be positive; if no services of that type occurred, show “not calculable”.
Then choose an allocation basis for shared expenses. This proposal uses direct minutes: Mj = Nj × tj; Aj = A × Mj / (MD + MS). Fully allocated unit cost is Kj = Uj + Aj / Nj. The weighted average is K = (ND × KD + NS × KS) / (ND + NS). Where direct time is unavailable, agree and record another allocation basis before comparing results.
Edge cases: when a category has no completed services, leave its unit cost as “not calculable” and calculate the average using only categories with activity. If total service volume is zero, no average service cost can be calculated; report period expenses separately. Allocation by minutes also requires a strictly positive total. When adding suites or other categories, include them in the volume, minute and cost totals rather than allocating all shared expenses only to departures and stayovers.
Check a worked example
Fictional illustration, not an industry benchmark: 100 departures taking 30 minutes each and 150 stayovers taking 18 minutes each; loaded labour cost €24 per hour. Linen costs €4 and €1.50; supplies cost €1 and €0.50; no contractor is used. Rework totals €50 for departures and €30 for stayovers. Shared expenses are €570.
Departure: 30 / 60 × 24 + 4 + 1 + 50 / 100 = €17.50. Stayover: 18 / 60 × 24 + 1.50 + 0.50 + 30 / 150 = €9.40. Direct minutes total 3,000 + 2,700 = 5,700. Shared expenses allocate €300 to departures and €270 to stayovers, equivalent to €3 and €1.80 per service.
The fully allocated costs are therefore €20.50 per departure and €11.20 per stayover. Total cost: 100 × 20.50 + 150 × 11.20 = €3,730. Average: 3,730 / 250 = €14.92 per completed service. This is neither a cost per occupied room night nor a contractor quotation.
Explain changes before claiming savings
Keep two versions: a budget using planned volumes and times, and an actual calculation using validated observations. The executive housekeeper explains changes in service content; finance reconciles the totals to expenses within the agreed boundary. A larger departure share can increase the average even when both unit costs remain unchanged.
Account explicitly for paid hours not directly allocated to rooms: briefings, travel, training or available capacity. Include them in A or in an hourly rate designed to absorb them, never both. Fewer observed minutes do not create cash savings unless expenditure changes. Close the period after the reconciliation is approved, keeping the assumptions available for the next comparison. Missing invoices should remain identified as estimates until finance replaces them.
Frequently asked questions
Should available rooms be the denominator?
Not for this service cost. You may track a separate available-room measure, but give it its own denominator and management purpose.
How should suites be included?
Add another service category when the work differs materially. The same formula supports several categories, provided they all share a documented allocation basis.
