1
BUSINESS PLAN PROCESS
Every year based upon the
published schedule, the hotels are asked to complete the "Business
Plan" for the following year. This process involves the entire Executive
Committee of the hotel, and the key drivers for this process are the General
Manager together with the Director of Finance and the Director of Sales &
Marketing.
For this purpose an
extensive worksheet has been created, which allows the hotel to not only
communicate its financial goals for the following year, but also its strategy
on how to achieve these goals.
Reference will be made to
the "Balanced Scorecard", which consists of
¨
Financial Results
¨
Market Share / RevPar (Revenue per available room)
¨
Guest Satisfaction Survey Results
¨
Associate Opinion Survey Results
With the
exception of room revenue, which includes statistics, financial results are
top-line driven and are limited to the Profit
& Loss Summary results only. Please ensure that your Sales &
Marketing and Revenue Management Team get an early start since details are
required for room revenues and the overall financial results and calculations
are driven of these numbers.
1.1
Business Plan Preparation
¨
Room Segmentation:
Sales & Marketing and
Revenue Management provide detailed room segmentation forecast through the end
of the year.
¨
Salary & Wage Survey:
Human Resources conducts a
salary and wage survey to identify any wage adjustments. (Note: Start
early as this process usually takes time!)
¨
Year End Forecast:
Director of Finance
completes a detailed forecast through the end of the year.
¨
Goals:
Executive team establishes
overall goals.
Example:
·
Financial
§ Room revenue
increase +3.0%
§ F&B revenue
increase +2.0%
§ HP margin
increase +2.0 points
·
AOS goals
·
GSS goals
·
The entire team should be supporting the established goals.
S&M and Revenue Mgmt might decide to establish their goals based on a
detailed break down of the segmentation and statistics.
¨
Changes in cost/controllable/wages etc.
Respective Executive
Committee member provides input in regards to other revenue growth or cost
development:
·
Banquet à Director of
Sales & Marketing
·
Outlets à Director of Food
& Beverage (revenue and cost/controllable)
·
HLP / Engineering à Director of
Engineering
·
Rooms à Director of
Sales & Marketing (revenue)
·
Rooms à Director of
Rooms (cost/controllable)
·
Salary & Wages à Director of
Human Resources
¨
Market Overview and Strategy:
Input required from General
Manager, Director of Sales & Marketing, Revenue Manager, Director of Food
& Beverage
1.2
Approximate Time Schedule (subject
to changes)
|
Time
|
Reporting
|
|
August*
|
à Regional Office to provide Business Plan worksheet with
historical data of individual hotels after month end closing
|
|
Early
September*
|
à Hotels to submit Business Plan to Regional Offices for
review
|
|
Mid /
End September*
|
à Regional Office schedule conference calls with
properties to discuss goals and strategy
|
|
End
September*
|
à Hotels to submit any changes necessary based on regional
review
|
|
October
/ November*
|
à Regional Offices to confirm Business Plan with Corporate
Office
|
Note:
-
Business Plan submission to owners only after approval of
Business Plan please check with your Area Director
of Finance!
-
Verify Business Plan submission due date stated in your
Management Agreement!
-
Confirm Business Plan format handed to owner in the past
with the outgoing Director of Finance or respective Area Director of Finance!
|
Time
|
Reporting
|
|
Beginning
January*
|
à Hotels to update Business Plan with actual results in
place of forecast
à Hotels to decide on goal based on % growth or to keep $
amount already established (regional input, especially if forecast was missed
considerably)
|
|
Mid
January*
|
à Hotels to submit revised Business Plan
à Regional Office to confirm
|
|
End
January*
|
à Hotels to submit Budget Spread based on confirmed
Business Plan
|
*Estimated
Timeline – Please note months and dates may change and will be communicated by
your Regional Office
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