Expense Category

What expense category do hotels come under?

There is no definitive answer to this question, as hotels can come under multiple expense categories depending on the business. However, some of the most common expense categories for hotels are:

Construction and Renovation

If your hotel is undergoing construction or renovation, then the associated costs will generally come under this category. This can include anything from the initial construction costs to on-going maintenance and renovations.


The costs of utilities such as electricity, gas, water, and waste disposal are often classified as a separate category for hotels. This is because these costs can fluctuate significantly depending on the size of the hotel and the number of guests.

Marketing and Advertising

The costs of marketing and advertising your hotel are usually classified as a separate category. This can include anything from online advertising to print and television advertising, as well as PR and marketing campaigns.

Staff Costs

One of the largest expenses for most hotels is staff costs. This can include salaries, bonuses, and benefits, as well as the costs of training and development.

Other Operating Expenses

There are a number of other operating expenses that hotels incur, such as insurance, legal fees, and accounting costs. These are often classified as a separate category to help businesses keep track of all their expenses.

The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.
“Accurate classification of expenses is vital for businesses as it forms the backbone of financial reporting, tax compliance, and strategic decision-making. It enables businesses to track and analyze their spending patterns, identify cost-saving opportunities, and assess the profitability of various operations or projects. Having a single source to turn to for accounting classification suggestions, such as the Ramp Expense Classifier tool, is immensely helpful as it provides consistency, reduces ambiguity, and streamlines the expense classification process.”
Audrey Carroll
Senior Manager, Accounting, Ramp

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