Which cost would be categorized as a fixed cost in a hotel?

Property taxes are classified as a fixed cost in a hotel because they do not fluctuate with the level of occupancy or business activity. Fixed costs are expenses that remain constant over time, regardless of how many guests occupy the hotel. Since property taxes are typically assessed annually and do not change based on short-term changes in revenue or occupancy rates, they are a reliable example of fixed costs.

In contrast, housekeeping supplies are variable costs because they can change based on the number of guests and the level of service provided. Utilities tend to have variable components depending on usage, which can fluctuate with occupancy. Staff overtime pay is also a variable cost, as it is incurred based on staffing needs that change with guest volume and other activity levels. Therefore, property taxes stand out as a consistent, unchanging expense, solidifying their classification as a fixed cost.