General and administrative (G&A) expenses are the highest cost in undistributed operating expenses for hotels. G&A expenses could include payroll and related expenses, office supplies, computer services, accounting and legal fees, and other expenses.
As a user assumption, Delve’s financial model records the G&A as a percentage of the Opex. The resulting G&A expenses will be calculated with the percentage assumption, Opex and total Net sq m or NSF or Annual RevPAR and total number rooms.
How this is used
For resulting G&A (% of Opex):
G&A as a percent assumption (%) x Opex / Net sq m or NSF x Net sq m or NSF = Annual G&A expenses
For resulting G&A (% of Revenue):
G&A as a percent assumption (%) x Total Annual RevPAR x Keys = Annual G&A expenses