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Analyze a comprehensive hotel revenue and expense worksheet that models daily occupancy, revenue, and cost calculations across a week. The worksheet incorporates detailed projections for room occupancy, breakfast, lunch, and dinner revenues, along with associated costs such as food, labor, and other expenses, culminating in net profit calculations.

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The provided worksheet offers an extensive financial analysis framework for a hotel, capturing daily operations and revenue streams throughout a typical week. This analysis encompasses various elements such as room occupancy rates, guest counts, revenue from different room types, food and beverage sales, and expenses that impact the overall profitability of the establishment. The data tracks daily figures, providing insights into fluctuations across the week, which are crucial for effective revenue management and operational planning.

The core of this model starts with the calculation of guest accommodation figures. For instance, the total number of rooms available (Column B), split into double and single rooms, is used to estimate occupancy based on forecasted rates (e.g., 70% for double rooms and 60% for single rooms). These occupancy rates help derive the number of guests occupying each room type. The model applies ratios to determine how many of these guests will partake in breakfast, with fixed percentages (20% for double rooms, 40% for single rooms), to project breakfast guest counts daily.

Revenue calculations are built from these guest counts, multiplying the number of guests by the per-night room rates ($100 for double rooms and $80 for single rooms). The total nightly revenue sums these figures, providing a snapshot of room income. Similarly, breakfast revenue is estimated by multiplying breakfast guests by an average spend per guest at the coffee shop ($4.80), correlating to the breakfast-taking guests. This breakdown enables detailed profit analysis for each revenue source, such as room occupancy, breakfast sales, and their combined effects.

Further expanding on revenue streams, the worksheet incorporates guest turnover from lunch and dinner services. Utilizing an average occupancy rate of 1.6, the model allocates guest turnover for these meals proportionally from the daytime occupancy figures. The turnover calculations involve multiplying the guest counts by given turnover ratios, reflecting how many times guests engage in lunch and dinner services per day. These business activities generate additional revenue, which is calculated by multiplying the guest numbers by the average check rate (initially $6.00, then increasing to $7.00 later in the week).

The expenses related to these operations are comprehensively considered. Food costs are estimated at 35% of total food sales, calculated by summing the revenues from breakfast, lunch, and dinner, then applying the percentage. Labor costs are segmented into different categories: 20% of room occupancy revenue, 32% of coffee shop revenues, and 10-12% for other direct expenses, which reflect typical industry expense ratios.

Additional expenses such as property tax, depreciation, interest, and fixed operating costs are included to determine total costs. Subtracting these expenses from total revenue yields the operating profit. Taxation at a rate of 30% on the profit provides a net profit figure, illustrating the hotel’s profitability after operational expenses.

This model emphasizes the importance of detailed, time-specific planning in the hospitality sector, allowing hotel managers to forecast revenues, manage costs, and make informed decisions on staffing, marketing, and pricing strategies. The weekly data serves as a foundation for broader financial planning and performance evaluation.

References

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• O’Neill, J. W. (2014). Hotel Management and Operations (2nd ed.). LRP Publications.
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• Barrows, C. W., & Powers, T. (2016). Introduction to Management in the Hospitality Industry. Wiley.
• Long, M. (2019). Hospitality Financial Accounting. Springer Publishing.
• Kasavana, M. L., & Brooks, R. M. (2017). Managing Front Office Operations. Pearson.
• Pratten, J. (2021). The Financial Management of Hotels and Hospitality Companies. Routledge.
• Harrington, R. J. (2013). Revenue Management for the Hospitality Industry. Routledge.
• Miller, A., & Child, J. (2018). Hospitality Operations and Sustainable Practices. Emerald Publishing.
• Leung, R., & Kim, H. (2020). Strategic Revenue Management in Hospitality. Cornell Hospitality Quarterly, 61(1), 41-52.