The Effect of Operating Cost Management and Business Revenue on Return On Equity

Abstract

The hotel industry faces increasingly competitive conditions that require effective operational cost management and revenue optimization to maintain financial performance. Emaki Hotel Jatinangor experienced fluctuations in operational costs and business revenue during the 2021–2025 period, which were accompanied by changes in Return On Equity (ROE). The purpose of this study is to ascertain how business income and operational cost control, both partially and concurrently, affect ROE at the Emaki Hotel Jatinangor. Using secondary data from the hotel's financial reports for the years 2021–2025, this study used an associative quantitative approach. Multiple regression, multiple correlation, coefficient of determination, t-test, and F-test were used to assess the data that were gathered through literature review and documentation. With a coefficient of determination of 70% and a t-value of 3.480, which is higher than the t-table value of 3.182, the results show that operational cost management has a favorable and significant impact on ROE. With a t-value of 3.300 and a coefficient of determination of 76.5%, business revenue likewise significantly and favorably affects ROE. With a multiple correlation coefficient of 0.983 and a coefficient of determination of 96.6%, operational cost management and business revenue both significantly impact ROE at the same time. The F-test yields an F-value of 18.450, which is higher than the 3.354 F-table value. These results suggest that increasing the efficiency of equity usage at the Emaki Hotel Jatinangor requires careful consideration of operational cost management and business income.