Hospitality and Tourism Finance - Organizational Chart PDF

**Finance -- Hospitality and Tourism** - Organizational chart I. [Room Division] Income statement: a financial statement that lays out a company\'s revenue, expenses, gains, and losses during a set accounting period. It provides valuable insights into various aspects of a business, including i...

**Finance -- Hospitality and Tourism** - Organizational chart I. [Room Division] Income statement: a financial statement that lays out a company\'s revenue, expenses, gains, and losses during a set accounting period. It provides valuable insights into various aspects of a business, including its overall profitability and earnings per share. Occupancy rate: to assess the rate of attendance of the establishment, expressed in %. Example: Nb of room available (rooms = hashtag): 125 x 365 = 45625 and then this: Une image contenant texte, Police, capture d'écran, ligne Description générée automatiquement Keep in mind that the number of rooms available depends on various factors: - Rooms out of order - Rooms allocated to staff Average daily rate: to calculate the revenue generated by each rented room, expressed in currency value.  ***Example: Hotel « z »* 90 rooms and 240 opening days** **Revenues 2023: 2 712 000** **Nb room sold: 16 650** **Pour calculer OR:** **Combien de chambre occuper x nb de chambre dispos = résultat** **Puis nombre de chambre vendue diviser par le résultat qu'on a obtenu juste avant** **Devient un pourcentage (décaler de 2 derrière la virgule) = OR** **OR: 77,08** **Pour calculer ADR:** **Revenue 2023 diviser par numbers of room sold** **ADR : 162,88** Revenue per available room (REV PAR): to assess the revenue generated by each available room, expressed in currency value. Une image contenant texte, capture d'écran, Police, blanc Description générée automatiquement - **Whatever the hotel is, its range, its location, its category, its number of rooms: as soon as the RevPAR increases by 1 euro, the turnover per room increases by the value of the number oof room available over the period.** **OR: 89 060 rooms available =\> 82,41** **ADR: Room revenue (8 000 000) diviser par 109 = 73 395 rooms sold** **Revpar = revenue division= room revenue : 8 000 000 diviser par 89 060 = 89,82 euros** **Revpar = 0,8241 x 109 = 89,82 euros** ***Exercice hôtel test data*** 1. **86 x (365-62) = 303 = 26 058** 2. **ADR : 1 980 000 / 20 400 = 97,06 euros** **OR = 20400 / 31 080 = 65,64%** 3. **Method 1 : 1 980 000 / 31 080 = 63,71 euros** **Method 2 : Bien penser à redécaler la virgule pour l'OR donc :** **65,64 devient 0,65664** **Et donc : 0,6564 x 97,06 = 63,71 euros** 4. **Rajouter 1 euro par nombres de chambres dispo :** **Dans notre cas 31 080 à ajouter aux revenues : 1 980 000 + 31 080 = 2 011 080 e.** **Même chose si ça augmente de 2, 3...** **REVPAR = OR X ADR** **OR = REVPAR / ADR** **ADR = REVPAR / OR** - **Income statement:** **We should expect:** - **Net profit of 10%** - **EBITDAR (earnings before interest, taxes, depreciation, amortization, a and rent) of 30%** **+ consider that rent, depreciation, insurance, interest and taxes = 20%** - **Analysis** **More you sell, more you pay for raw materials** **Activity** - **Start by profit (GOP, EBITDAR, net P) compared to budget/ n-1** - **Next analyze revenues** - **Total revenues: values + evo rate** - **Room division: KPIs - OR, ADR, REVPAR\...** - **F&B: KPI-s - frequency, spend/ head, capture rate** - **Others (spa)** **Expenses** - **COGS: budget - point of % if + 0.5%gap = red warning** - **Explanation:** - **Inflation** - **Bad inventory management** - **Higher prices of suppliers
** - **Wastage
** - **Non respect of portion
** - **Stolen items** - **Labor costs: - point of % if + 0.5% gap = red warning** - **Explanation** - **Productivity** - **OPEX = same** - **Ad, maintenance, energy...** II. **[Some KPI's (Key Performance Index)]** - **MPI (market penetration index): a calculation to measure your hotel's occupancy compared to the average market occupancy levels.** Une image contenant texte, capture d'écran, Police, ligne Description générée automatiquement - **ARI (average rate index): a calculation to measure your hotel's average daily room rate compared to the ADR of your comp set.**  - **RGI (revenue generation index): RGI compare your hotel's RevPar to the average RevPar in the market. It is used to determine if a hotel is gaining a fair share of revenue compared to its comp set.** Une image contenant texte, capture d'écran, Police, ligne Description générée automatiquement III. **[Break Even Point]** **Definition: When the volume of activity is at BEP, there is no profit or loss. Also, when the activity is below BEP, a loss will be incurred because total costs exceed total revenue. When the volume of activity is above BEP, there will be a profit because total sales revenue exceeds total costs.** **The further below BEP, the higher the loss will be and, the further above BEP, the higher profit.** - **Break even analysis**  - **Calculation method** **Total revenue = total costs** **Total revenue = fixed costs + variable costs** **Revenue -- variable costs = fixed costs** **Revenue -- variable costs = variable cost margin or contribution margin** **Contribution margin = fixed costs** **Fixed costs = total fixed costs expressed in value (euro)** **Variable costs = total variable costs expressed in %** **100 (%) - X variable costs (%) = % variable costs margin or % contribution margin** **Revenue (BEP) = Fixed Costs (euro) / % contribution margin**