Key metrics

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All results

The annual results of your hotel are stated in the operating review, will be created automatically by the accountant at the end of each year. You just have to analyse the results, you do not have to calculate them yourselves. Of course, when making decisions and incurring costs, you will make some assumptions and calculations predicting occupancy and profit. After each year ends, they will be ready for you via your secret Team File link.

The operating review consist of a number of crucial elements, whcih each have their own page:

• The overview of the Operating review
• The Revenues
• The Costs
• The Net profit
• The Key metrics

What are the key metrics?

The Bergman family is a very practical family and they are all real entrepreneurs! Christina also ran her hotel by having a good grip on the key metrics: this is an overview of the most important figures of a company, some benchmarks, and some key performance indicators. The development of these figures meant the world to them and it still does! Now, Jill Jandal, Christina's successor, would like you to continue working with these key metrics and, as she explains:
Leave all the details, balance sheets etc. to the accountant and other number-fanatics. But please make calculations related to the operating review and your decisions which matter and which show that you are taking care of the profit of my hotel!

After each year you will get, privately and only for your teams, your personalized results on your hotel's finances via your Team File. The operating review page will also give you some insights into the revenues structure and the costs side.

Explanation of the key metrics

This offer a summary of the most important figures:

• Operations

- Total revenues: related to your occupancy rate and prices.
- Total costs: interesting to see developments in the costs.
- Total costs as % of total revenues. In this case, 84.78%, leaving 15.22% margin for the hotel which is quite a lot (in fact too little costs made in the last year, now the hotel in lagging behind).

• Ratios
  • The occupancy rate of rooms is a very important number indicating if your hotel is attracting (enough) customers. In the hotel branch, depending on the type of hotel and location, above 45% for this kind of hotel is okay. Before, the number was 50%.
    
  • Your average room price is simply the last-minute price plus the rack rate divided by two: ((€ 80 + € 100) ./. 2) = € 90. The second one is the same for the weekdays: so in this case ((€ 100 + € 140) ./. 2) = € 120
    
  • Market share (of total revenues): your position in your city by expressing your revenues (NOT net profit!) as a percentage of the total revenues of all hotel in your city.

• Net profit

- The net profit per year.
- The net profit added up from all of the years, including the history (€ 431,301).

Key metrics of the year 0, as you take over, and examples of the years afterwards.

• Ranking

- Business ranking, based on your total net profit, Business competition
You profit compared to the other hotels in your city in any year. In the hotel's results, you will find indicated the ranking of your hotel after adding up the profit after all the years passed. The hotel with the highest added up profit after all years passed, is the winner of the Business competition at the end of the Game. The height of your profit depends on:

• the Business- and Creativity mark you get from your coach
• your decisions on prices and costs, in combination with your occupancy rate.
  

- Creativity rank, Creativity competition
Your position on creativity compared to the other hotels in your city in any year. This is directly related to the Creativity mark you get in any year. In the hotel's results, you will find indicated the ranking of your hotel based on the average over the years passed. The hotel with the highest average mark after all years passed, is the winner of the creativity competition at the end of the Game.
More on this on the Key metrics on the pages ratios and benchmarks.

Dashboard

The tab Dashboard gives a visual overview of the most important financial figures after each year and some comment or your coach

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