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Planning For Profits - An introduction to the budgeting process

publication date: Jun 24, 2010
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author/source: Dr. John Hogan CHE CHA MHS
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The full PLANNING FOR PROFITS  program is designed to demonstrate your specific cost per occupied room vs. the industry average (provided in base model), fixed and variable costs, monthly and yearly cash flows, monthly and yearly budgets and a host of other information.


PLANNING FOR PROFITS
allows you to perform "What if" scenarios for enhanced forecast planning.
Overview
Owners and General Managers face financial decisions daily. 
  • Are my rates at the right level? 
  • Am I pursuing the right markets?
  • Am I relying too much on instinct regarding what occupancy "should be"? 
  • If I decrease room rates, will it offset the new competition?

PLANNING FOR PROFITS
is a training resource that allows you to ask a series of "What if" questions in an excel worksheet that will allow you to examine various scenarios to aid you in making those decisions. 

PLANNING FOR PROFITS may be used as a line-by-line profit and loss statement that utilizes the Uniform System of Accounts, the standard of the hotel industry. It can be utilized as a month-to-month income forecast or even annualized for debt service forecasts, which features a list of fixed and variable costs.

The PLANNING FOR PROFITS worksheet automatically calculates the cost of an unoccupied room, based on your own operating expenses. The glossary of terms that describes each line item indexed to the corresponding line on the sheet. Please note that the base model was built for a 100-room hotel and some line item costs may need to be added to portray a property's specific needs accurately. 


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