Hotel Manager Financial Planning

Hotel Budgeting (Hotel Financial Planning) is a critical Hotel Management Role.

A Hotel Budget is a Financial Plan; perhaps for a year, perhaps for longer, certainly for a month; its level of detail might be derived by Hotel Culture, Law and Regulation and by the Senior Financial Managers’ and the software that it will be communicated upon.

Very Senior Hotel Managers normally create Budgets for more Junior Hotel Managers to use. ?Sometimes such Financial Planning, such Budgeting is a valuable process – sometimes it is more of a waste of time for all within the Hotel?

Creating your Hotel’s Financial Plan is only one step in the Hotel’s budgeting process. You also need to manage how you are performing against what you had planned to achieve. Budgeted to achieve. Use these ideas to monitor and review your Hotel budget more successfully. Your Financial Plan.

Hotel Managers need to make Hotel Budget monitoring a priority. If your Hotel is not performing as expected, you need to know about it as soon as possible so that you can take any necessary action. Either alter the Financial Budget or improve performance within the Hotel.

It is a good idea to manage Hotel budget monitoring as if it were a top priority item on the appropriate Hotel Team meeting agenda. Even better, hold a separate Hotel budget monitoring meeting so that you can set time aside with individual Hotel Team members to explore any major variances in depth.

Always acknowledge Hotel budget items that are proceeding according to the Hotel’s Financial plan, but you do not need to discuss them. Use your time to concentrate on the important issues.

Look out for warning signs within the Hotel. All things going well, you should not be surprised by anything on your Hotel budget report. Your operational Hotel Management activities ought to have led you to expect what you read. If this is not the case then either: the budget is wrong or you are doing the wrong things:

If you are shocked by your Hotel budget report, it is time to start finding out why?

Take appropriate corrective action If your Hotel budget is not being achieved, don’t leave corrective action until it is too late to do anything. For example, imposing spending restrictions in the last couple of months of a Covid budget year is unlikely to ensure you achieve your budget.

If your Hotel Budget is not achieved, make sure that all involved in the Financial Planning process agree on the corrective action that needs to take and assign Hotel Management responsibilities accordingly.

While it is important to take timely action if your Hotel budget is not going according to plan, it is just as important to avoid making big decisions, or to alter your budget at the slightest sign of a problem.

Remember a Hotel Budget is an estimate of income and expenditure for a set period of time. If a Hotel Budget is created that could never be achieved – it is a bad budget; that it is not to say that budgets cannot be ambitious, but Hotels Managers are not Magicians.

Always Communicate Budget progress – the good and the bad can be motivating for the members of your Hotel team or departments involved. So share Financial results with your team when appropriate. Never hold back bad news unless there is a very good reason for doing so.

As your budgeting period draws to an end, it is important to start putting some review plans in place. This means booking a date soon after your budget ends to get together with the relevant people to discuss how you performed against your Hotel budget. Are you discussing with the right people the correct information? Review thoroughly.

Always establish key learning points. Once you have had a chance to conduct a thorough review, it is important to list the key lessons learned. Somebody (it may be you) should take responsibility for implementing each action point. Always Learn from these during the next Financial Planning process.

A Hotel budget is used to forecast the financial results of our Hotel for a future period; it is used for planning and performance measurement. Our Hotel Budget is also used for the purposes of spending for fixed assets, developing new products, training employees, setting up bonus plans and controlling our Hotel operations. Hotel Budgeting (Hotel Financial Planning) is a critical Hotel Management Role.