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.
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 🡪 Director of Sales & Marketing
- Outlets 🡪 Director of Food & Beverage (revenue and cost/controllable)
- HLP / Engineering 🡪 Director of Engineering
- Rooms 🡪 Director of Sales & Marketing (revenue)
- Rooms 🡪 Director of Rooms (cost/controllable)
- Salary & Wages 🡪 Director of Human Resources
- Market Overview and Strategy:
Input required from General Manager, Director of Sales & Marketing, Revenue Manager, Director of Food & Beverage
Approximate Time Schedule (subject to changes)
Note:
- Business Plan submission to owners only after approval of Business Plan by Marriott International, 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!
*Estimated Timeline – Please note months and dates may change and will be communicated by your Regional Office
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.
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 🡪 Director of Sales & Marketing
Outlets 🡪 Director of Food & Beverage (revenue and cost/controllable)
HLP / Engineering 🡪 Director of Engineering
Rooms 🡪 Director of Sales & Marketing (revenue)
Rooms 🡪 Director of Rooms (cost/controllable)
Salary & Wages 🡪 Director of Human Resources
Market Overview and Strategy:
Input required from General Manager, Director of Sales & Marketing, Revenue Manager, Director of Food & Beverage
Approximate Time Schedule (subject to changes)
Time
Reporting
August*
🡪 Regional Office to provide Business Plan worksheet with historical data of individual hotels after month end closing
Early September*
🡪 Hotels to submit Business Plan to Regional Offices for review
Mid / End September*
🡪 Regional Office schedule conference calls with properties to discuss goals and strategy
End September*
🡪 Hotels to submit any changes necessary based on regional review
October / November*
🡪 Regional Offices to confirm Business Plan with Corporate Office
Note:
Business Plan submission to owners only after approval of Business Plan by Marriott International, 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*
🡪 Hotels to update Business Plan with actual results in place of forecast
🡪 Hotels to decide on goal based on % growth or to keep $ amount already established (regional input, especially if forecast was missed considerably)
Mid January*
🡪 Hotels to submit revised Business Plan
🡪 Regional Office to confirm
End January*
🡪 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
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.
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 🡪 Director of Sales & Marketing
- Outlets 🡪 Director of Food & Beverage (revenue and cost/controllable)
- HLP / Engineering 🡪 Director of Engineering
- Rooms 🡪 Director of Sales & Marketing (revenue)
- Rooms 🡪 Director of Rooms (cost/controllable)
- Salary & Wages 🡪 Director of Human Resources
- Market Overview and Strategy:
Input required from General Manager, Director of Sales & Marketing, Revenue Manager, Director of Food & Beverage
Approximate Time Schedule (subject to changes)
Note:
- Business Plan submission to owners only after approval of Business Plan by Marriott International, 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!
*Estimated Timeline – Please note months and dates may change and will be communicated by your Regional Office
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