OPERATING BUDGET
An operating budget is a detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period. The Hilton Key Largo Resort started its Fiscal Year on October 1, 2013 and continues until September 30, 2013. Hilton Worldwide, however, breaks down its Fiscal Year into four quarters: 1st Quarter (January 1 – March 31), 2nd Quarter (April 1 – June 30), 3rd Quarter (July 1 – September 30), and 4th Quarter/Year-End (October 1 – December 31). For the sake of this project, the Hilton Key Largo Resort is said to have started its Fiscal Year on the real 4th quarter, October 1, 2013, and continued until the end date of the real 3rd quarter, September 30, 2013. The Consolidated P&L Statement for Year 2013 was based upon the previous year’s number of rooms available for sale, number of rooms recorded to be rented/sold, room revenue, and occupancy percent, ADR, and RevPar.
The numbers documented within our Operating Budget are based upon estimated amounts in accordance to the number of rooms that the Hilton Key Largo Resort has available and the previous project completed. In addition to the given P&L statement, we added our Weddings Department, Meetings & Events Department, and our Recreations Department as major revenue sources for the resort. The Weddings and Events department has a huge impact on Total Revenue, which is indicated in the attached budget. The months of December – April have very high occupancy ratios (> 70%), as these are cooler-weather and successful months for the two departments. Also, the Recreational Department is also a major revenue source for the resort, which is combined with Fitness. At Hilton Key Largo, we offer Jet Ski rentals, sailb...
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...ent at the Hilton Key Largo Resort. This is due to high generating months in February through April, which indeed increases booking profits for the Rooms Department during these three months. While our cost centers (aka Overhead Expenses) include: the administrative and general expenses, the advertising and promotion expenses, repairs and maintenance expenses of the hotel and its grounds, the yearly utility expense, the IT department expenses, Human Resources, and our royalty fee to Hilton Worldwide and management fees for the year. The total Overhead equals approximately $48,000,000 at year’s end. A small fee for the revenue generated. Overall, our resort is healthy and with 2014 Initiatives/Actions to be proceeded in the coming year, we will continue to grow and explore ways to improve quality and incentives to our customers.
Executive Summary- Mountain Man Beer Company (MMBC) is experiencing declining sales for the first time in the company’s history. Chris Prangel, who will inherit the family-owned business in five years is faced with a hard decision that whether to take the risk of launching a new product to attract younger customers or to follow his father’s steps, continuing doing the 80-year-old Mountain Man Lager business. His father has concerns about the profit, the core business and the cannibalization and Chris has done several researches to estimate the potential business opportunity of the new product Mountain Man Light Through an analysis about the company, the product and the market, it is clearly beneficial for MMBC to launch Mountain Man Light. But Mountain Man Lager is the core business without which it is impossible to develop a new product and grasp a new market share, which is the spirit of the decades-old brand. Therefore, while I recommend that launching Mountain Man Light to create a new business, appealing to younger and female customers and making profit, Chris should take these strategies into account: keeping enough effort on existed product and holding the top market position, developing the brand and expanding the product line, if he plans to make profit from the new product in two years.
The Hilton Key Largo Resort is a six-year-old Hilton Worldwide hotel that has established a high regard, and is a positively commented on resort for vacationers on many travel websites. As one of the eleven successful Hilton Worldwide brands, the Hilton Hotels & Resorts is marked to be an unremittingly “innovative, forward-thinking global leader of hospitality” (www.hiltonworldwide.com). This brand name expands to 550 hotels and resorts in about 80 countries. At our Hilton, we cater to the Hilton HHonors program, which is a loyalty program in which its members have the ability to earn both points and airline miles for their stays at over 4,000 hotels in 90 countries, as well as receiving many other complementary privileges.
After analyzing our most recent annual report from 2012. We noticed that our operational cost is approximately $20,000 over our revenue. Looking at our data from previous years, the $20,000 over-budget has occurred in the past. In 2010, Partners in Health had approximately $90,000 in unused funds which carry over at the end of ...
Overlook Hotel, a nice and cozy place to stay for a vacation or a job, but, may drive you into madness. Where Jack Torrance ( Jack Nicholson) wife of Wendy Torrance (Shelley Duvall) and a writer takes a part time job to be the caretaker for the Overlook Hotel for a few months, where he can spend some time to himself and write. Wendy realizes over the months that Jack has changed in his attitude when he snapped at her when he was “working” on his writing. Wendy fears for her son, Danny ( Danny Lloyd) who has been experiencing odd occurrences with his imaginary friend “Tony”. As the Months go by, Jack starts to hallucinate events in the past of the man, Delbert Grady (Philip Stone) who killed his wife and two daughters and then shot himself
The hotel industry performs within a saturated market, driven by customer loyalty and competitive pricing to stand-out. This competitive nature makes it extremely important to capitalise on strengths while improving on
However the cash surplus generated during peak period that is July to November is typically enough to meet the short fall. But this year the hotel requires major renovations in order to be continually be able to attract guests. They estimated that the renovations will cost $250000 but now it appears that $300000 of work is necessary. Also their long term group also manager has also left unexpectedly and her replacement is not as effective in obtaining business from the regional business and organization. Furthermore their revenues have also declined by 15% for January and February and advance booking are also down. Thus a cash flow forecast is made to estimate the
The overall industry saw a strong boom rate from 2010-2014. The global hotels & motels industry had total revenues of $677.1bn in 2014, representing a compound annual growth rate (CAGR) of 4.6% between 2010 and 2014. In comparison, the Asia-Pacific and US industries grew with CAGRs of 6.6% and 5% respectively, over the same period, to reach respective values of $163.7bn and $166.2bn in 2014(Global Hotels & Motels 7). The reason for this growth is due to the Asia-Pacific Region and Americas. The US alone with its world’s largest hotels/market has conquered net value growth, while China has literally doubled the revenue in the same time span. The leisure segment
Habbo Hotel a social networking service operated by Sulake Corporation that is set up as a virtual world. Targeting English speaking teenagers between the ages of 13 and18 (2009, TechCrunch), this world consists of lobbies, lounges, and party rooms where Habbo citizens can socialize and lead an alternate life. The initial user experience in this virtual utopia may seem perfect at first, but certain things like product placement and theft can sway users’ ultimate experiences in this virtual community. With further research, I believe that positive elements of the Habbo world can be improved and negative elements mitigated to improve the online experiences of Habbo citizens.
This study will make inferences by content analysis in line with “Analyzing the Use of an Advance Booking Curve in Forecasting Hotel Reservations” “Hotel reservation methods--a discriminant analysis of practices in English Hotels” “A comparison of forecasting methods for hotel revenue Management”. As well company information from annual reports (2014 and 2015) will be analyzed with regard to occurred reservation system failures to conclude recommendation for how capacity utilization and demand management can be enhanced by updating current reservation system with better forecasting capabilities.
The story of “The Best Exotic Marigold Hotel” (Hoffman, 2012) focuses on a group of British retirees who decide to travel for their retirement to less costly and exotic Indian retirement community/ hotel. The group is lured by promotions for the recently reconstructed Marigold Hotel and are surprised when they arrive to find the hotel in disarray. Though the new surroundings is less luxurious than they had imagined, they are changed by their experiences.
History of Hilton hotel has been very interesting as it started as Mobley Hotel in year 1919 a small building. Because, when the company started it had no plans or ideas of expanding, the sole purpose was to serve as a place for the travelers to stay where they can comfortably enjoy a night or few and carry on towards their journey. After twenty-seven years of business and hard work, this small hotel went nationally in eleven states within United States, known as Hilton. Currently they have four thousand worldwide properties, either directly owned or franchised (including third party), in seventy-eight countries. Hilton even though allows franchises but there policies remain the same and direct Hilton officials do all the upper level management. The company name Hilton understands for Hosp...
Thanks to these factors, pricing becomes one of the primary uses with which hotels attract customers. However, due to customers’ independent nature, there influence over industry players is limited. In the high-end segment of hotels, price influence becomes even less as hotels find it easier to differentiate themselves from the competition and customers become less price sensitive coming to expect higher prices as a symbolism of superior quality and services. Lastly, corporate business and tour operators can exert more influence due to their large purchases but this affect is of a limited nature and does not extend across the whole
“The objective of this phase is to identify events and or future trends that will affect the hotel industry over the next five years. Also, the impact that those events and trends will have on your business in terms of cost and revenue changes and the timing of the impact.” (Fedele, 2010) For each of the external environment, it is also to identify what will affect the performance of the business.
Amenities, location, packages, rates, special offers - just a few of the many factors that are considered when choosing the functions of a hotel. I was very curious to see how different types of hotels differ in what they offer, how they offer it, and where they offer it. These services are extremely significant because they are what define a hotel. They define what type of guests they are targeting, what type of hotel they want to be perceived as, and what level of service they want to deliver to their guests. The impression of the hotel left on the guest is essential for the success of the hotel. The idea of adding amenities to keep up with competition or getting creative with services offered is not new. The Journal of Retail & Leisure Property mentioned that starting in the 1970’s, “hotels and resorts tried to gain market share from their competitors by increasing amenities in the guest rooms.” The services and amenities have always been a factor when deciding what approach to take when trying to find the most success. By comparing an average 2-3 star hotel with a 5-star hotel, I was able to gain a better understanding of the different services offered in hotels and the different expectations that certain guests have in their stay.
The Hotel industry has become very important in the past years due to immense traveling and growth of international business. The Hotel industry not only plays an important role in the life of people but as well as the economy of the country. I spent an hour of my day relaxing in the lobby at the Fontainebleau resort in Miami, while on vacation with my family visiting from out of state. It was my first time staying at the resort so I was eager to check it out, after seeing such great reviews on Yelp and hearing great things from friends who have been there in the past. The employees working at the resort were very welcoming, professional and willing to go above and beyond to help their guests. The check-in process was very quick due to having