[[Category:Hotel info]] __NOTOC__ __NOEDITSECTION__
[[Category:Info pages]] {{Template:New Skin Box}}
''→ Go! [[:Category:Hotel info]]'' <br>
''→ Go! [[Introduction to Hotel]]''</div><br>
{{Running competition}}
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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.
== What can you do? ==__NOEDITSECTION__
The operating review consist of a number of crucial elements, whcih each have their own page:
In the game you have a number of possibilities to influence the results of your hotel.
*The overview of the [[Operating review]]
* This platform on which you have a [[teampage]]: on this teampage you present your strategy and for instance the links to your social media channels. Anyone can read everything on this platform. Only after logging in you can edit your own teampage.
*The [[Revenues]]
* The secure section: only accessible with your private link, every hotel has its own code. In this secure section a hotel has its own [[teamsheet]] with:
*The [[Costs]]
** a [[decisions]] section
*The [[Net profit]]
** the [[explanations form]] to explain your decisions
*The [[Key metrics]]
** the [[results]] section where you can find your results after each year.
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* The social media (which you link to your teampage)
* Other live actions of your team: sometimes required, like the Trade Fair, but maybe also from your own initiatives.
We now look at the results of your operating review.
== All results ==__NOEDITSECTION__
The results of your hotel will be calculated automatically by the accountant of your hotel. You just have to analyse the results, you do not have to calculate them yourselves. After each year they will be ready for you in the secure section which is only accessible through your secret link.
Your results presented there will be divided into the next parts:
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* The results, the operating review with
== Operating review ==
** The Revenues
An operational review is an in-depth look at the big picture, summarizing the financial effects of your management choices: costs, revenue and results.<br> The results in this overview will be made automatically depending on
** The Costs: divided in costs fixed, costs variable and costs of your team's [[decisions]]
* your evaluations by your coach (so the quality of your arguments)
** Net profit
* your competitors
* The elements [[Key metrics]], [[Top Research|Market information from Top Research]] and [[Short commend]] of your coach are explained in separate pages.
* your decisions
The occupancy rate is the crucial element in all this. The total overview will be visible in your Team File after each year <br>
In the administration of Emerald Forest Hotel, as we use it, no [[VAT]] Value Added Tax is applicable. That is, not in the revenues, neither on the cost side. Furthermore, there is no record of the [[liquidity]], balance sheets (opening nor end of the year) nor an investment overview. We consider the revenues and the costs to be without any VAT, and all revenues and costs to be paid at the date they occurred; there is no debtors or creditors.
== Operating review ==__NOEDITSECTION__
== Net profit ==
''Please take into account that your hotel has 364 days (not 365) and some figures are rounded.<br>''<br>
Of course, the net profit per year is very interesting. The total costs will be deducted from the total revenues. If there is a bonus (something which turned out much better than expected) or a fine (e.g., tax), this is added or deducted from the profit leading to the net profit. <br>
At the end of each year you will find, in the secure section, in the tab ''Results'' your operating review. Your team (and your coach) are the only ones who can see these results. If a year has passed, you will see your results, as soon as they have been released by your coach.
You do not have to calculate anything in this operating review yourselves. You only take the decisions and the rest is automatically calculated for you. An algorithm calculates your occupancy rate depending on your decisions, the market, your coach's mark (related to the quality of your explanations) and other elements. Depending on your occupancy rate, you'll get more food & beverage and other revenues as well. <br>
Of course, the net profit per year is very interesting. The total costs will be deducted from the total revenues.
Upon taking over the net profit is: <br>
- Total revenue € 2,861,896 <br>
- Total cost € 2,430,595<br>
- No fine or bonus € 0,0<br>
- Net profit € 431,301<br><br>
The operating review shows the profit in any individual year and the total of net profit (all years added up). Again, in the example a number of predictions for future additional costs have been made. More on this on the [[Net profit]] page.
</DIV><br>
All the fixed and variable costs will automatically be calculated related to your occupancy rate and your decisions. The costs of your team choices will also be automatically brought to your operating review and will be visible here as well. So the operating review brings you the financial results of your hotel.
[[Image:results_profit_2023_01.jpg|thumb|600px|center| <center>''Net profit as you take over in grey 'year 1' column, plus examples in the following years; year 4 is not completed.<br> We will focus on year 0 now.</center>]]
== Revenues ==__NOEDITSECTION__
Revenues consist of the average (sales) prices times the number of booked rooms (occupancy rate). You can influence the prices, because you set them, while the occupancy rate is defined by all of your decisions and your explanations: the mark the coach gives to you for your performing as a team is influenced heavily by this. The maximum occupancy rate would mean all 100 rooms occupied during all days, so 52 weeks x 100 rooms x 7 days = 36.400 room nights. Check the next pages for detailed information on this.
* [[leisure market]]
* [[business market]].
All food and beverages are considered to be caused by these guests: so the higher the occupancy rate, the more revenues you get from food and beverages.<br>
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Banqueting is a totally separated unit in the hotel. The sales prices in this market in the past varied from a minimum of €25 to a maximum of €30 per person. You decide on the price of banqueting, so you do have some control. This gives you an indication: on the [[Banqueting]] page you can find some more info, pictures and videos on banqueting.
== Analysis ==
So the net profit upon taking over, in the example above, seems to be 15.07% of the revenue, with 84.93% being costs. This seems to be a good and interesting result, but it is up to you to put this in (a real) perspective of the industry. Because management did not make enough [[investments]] over the recent years, depreciation costs have been rather low. There is no problem with liquidity at all. <br>
Furthermore, the [[Bergman family|Bergmans]] did not really consider themselves to be staff, so there have been hardly any wages for them in the staff costs, which distorts the numbers. Their income mainly originated from the net profit which they, partly, took out of the company, being the entrepreneurs.
[[Image:results_revenues.jpg|thumb|600px|center| <center>''Revenues in year0 as you take over.''</center>]]
== More numbers ==
Check [https://setupmyhotel.com/train-my-hotel-staff/front-office-training/187-fixed-cost-and-variable-cost-in-hotels.html basic set-up of costs groups] in hotels to have some reference on the numbers. <br>
Of course, any situation is different, any time frame (think of the [[Covid]] period), the ownership, the state (quality) of the premises etc. The file, though, might give some ideas from a calculation perspective.
The above situation is just an example of the revenues as they will be shown in the complete operating review. So this example shows the history (column B, year0) which is the same for all teams as they start. After each year the next column (so the next year) will be available and filled out automatically. In this example this is just year 1 in column C. In the example all years have been filled out.
== Past ==
When your assignment is managing one of the new establishments, these will be the benchmarks you start with, and you refer to. So, you will start in your new venue, as a point of reference, with all the same set-up of costs and decisions as in the past. At the time you take your own decisions, you can roll out your new ideas, and concepts in full.
<br><br>
Underneath you'll find an overview which gives some more insights into the revenue structure, as far as information is available in the Bergman's administration. This all reflects the year before you take over, this will be your starting position.
''→ Go! Following the Introduction to the Hotel? Step 10/10 is the page [[Staff|Staff page, click here.]]''
The situation below is just an example of the costs as they will be shown in the final operating review. So this example shows year0 (column B) which is the same for all teams and as you take over. After each year the next column (so the next year) will be available and filled out automatically. In this example this is just year 1 in column C.
[[Image:results_costs.jpg|thumb|600px|center| <center>''Costs in year0 as you take over.''</center>]]
Underneath you'll find an overview which gives further insights into the cost structure as far as information is available in the Bergman's administration. This all reflects the situation as you take over, this will be your starting position.
<table border=1 cellpadding=8>
<tr><th>'''Costs'''</th></tr>
<tr><td>Costs: fixed</td><td> Depreciation costs of existing assets</td><td> € 525.187</td><td> 34,64%</td></tr>
<tr><td></td><td> market research expenses</td><td> € 0</td><td> 0,00%</td></tr>
<tr><td></td><td> other expenses</td><td> € 0</td><td> 0,00%</td></tr>
<tr><td>'''Total team choices costs'''</td><td></td><td> '''€ 0''' </td><td> '''100%'''</td><td> '''0,00%'''</td></tr>
<tr><td></td><td></td><td></td></tr>
<tr><td>'''Total all costs'''</td><td></td><td> '''€ 2.430.595''' </td><td>'''€ 2.430.595''' </td><td> '''100%'''</td></tr>
</table><br>
The different costs groups are all mentioned in the operating review table above.
* Costs: fixed
You can't influence these costs. These are costs which will be created no matter what the occupancy rate is. Over the years there can be small fluctuations, but the amounts will stay almost the same.<br>
-Depreciation going concern: depreciations of all the assets especially the building and the inventory. <br>
-Fixed staff costs: staff needed to run the hotel and which have to be paid even if there are no guests at all. <br>
-Costs of premises: costs of maintenance, repairs small adaptions to the building and the parking lots.<br>
-Insurance & interest costs: costs for insurance for staff, building an liability ans costs for mortgage and other loans. <br>
* Costs: variable
The variable costs will depend on the actual number of guests in the hotel so will only be filled out (automatically) after each year is finished. So there is a ratio between occupancy rate and all of these costs.
-Variable staff costs: the more guest you have the more work here will be to be done and the more staff is needed. So additional costs. <br>
-Laundry costs: the more guest the more towels, bed linnen etc. needed.<br>
-Cleaning costs: rooms need to be cleaned more often because of more guest and to be cleaned better.<br>
-F&B purchase costs: more guest mans more breakfasts etc. for guest and more f&b for additional staff so the purchase costs go up.<br>
* Costs: team decisions
Of your 14 [[decisions]] number 7 -13 lead directly to expenses which can be seen directly at the costs. The are directly connected to the choices you make in your [[decisions]] each year. As you can see in the past there were no expenses on these decisions. Of course this was good for the profit but it will come back like a boomerang! So Christina urges you to use this team costs group team decisions in an efficient way, though she knows this will probably lower the profit!
== Net profit ==__NOEDITSECTION__
The total costs will be deducted from the revenues. If there is a bonus or a fine this is added or deducted from the profit leading to the net profit. There is no VAT or other taxes in the city.
[[Image:results_profit.jpg|thumb|600px|center| <center>''Net profit in year0 as you take over.''</center>]]
In this case
-Total revenues were € 2.866.902<br>
-Total costs € 2.430.595<br>
-Net profit € 436.307<br>
-There is a bonus in this case so € 50.000 is added<br>
-Net profit € 486.307<br>
So the net profit seems to be 32,8% of the revenues, a good and very interesting result. <br>
But, the management did not make enough [[investments]] over the recent years, so the depreciation costs have been kind of low. There is no problem with liquidity at all. <br>
Furthermore the [[Bergman family|Bergmans]] did not really consider themselves to be staff, so there are hardly any wages for them in the staff costs. Their income mainly originated from the net profit which they, partly, took out of the company, being the entrepreneurs.
<br><hr>
''→ GO! [[#top|Top of this page]]''
<center><small>''Emerald Forest Hotel'' for an <font color="green">'''emerald''' </font color="green">hotel experience!
| Run your own hotel in this management simulation.</small></center>
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:
An operational review is an in-depth look at the big picture, summarizing the financial effects of your management choices: costs, revenue and results. The results in this overview will be made automatically depending on
your evaluations by your coach (so the quality of your arguments)
your competitors
your decisions
The occupancy rate is the crucial element in all this. The total overview will be visible in your Team File after each year
In the administration of Emerald Forest Hotel, as we use it, no VAT Value Added Tax is applicable. That is, not in the revenues, neither on the cost side. Furthermore, there is no record of the liquidity, balance sheets (opening nor end of the year) nor an investment overview. We consider the revenues and the costs to be without any VAT, and all revenues and costs to be paid at the date they occurred; there is no debtors or creditors.
Net profit
Of course, the net profit per year is very interesting. The total costs will be deducted from the total revenues. If there is a bonus (something which turned out much better than expected) or a fine (e.g., tax), this is added or deducted from the profit leading to the net profit.
Of course, the net profit per year is very interesting. The total costs will be deducted from the total revenues.
Upon taking over the net profit is:
- Total revenue € 2,861,896
- Total cost € 2,430,595
- No fine or bonus € 0,0
- Net profit € 431,301
The operating review shows the profit in any individual year and the total of net profit (all years added up). Again, in the example a number of predictions for future additional costs have been made. More on this on the Net profit page.
Net profit as you take over in grey 'year 1' column, plus examples in the following years; year 4 is not completed. We will focus on year 0 now.
Analysis
So the net profit upon taking over, in the example above, seems to be 15.07% of the revenue, with 84.93% being costs. This seems to be a good and interesting result, but it is up to you to put this in (a real) perspective of the industry. Because management did not make enough investments over the recent years, depreciation costs have been rather low. There is no problem with liquidity at all.
Furthermore, the Bergmans did not really consider themselves to be staff, so there have been hardly any wages for them in the staff costs, which distorts the numbers. Their income mainly originated from the net profit which they, partly, took out of the company, being the entrepreneurs.
More numbers
Check basic set-up of costs groups in hotels to have some reference on the numbers.
Of course, any situation is different, any time frame (think of the Covid period), the ownership, the state (quality) of the premises etc. The file, though, might give some ideas from a calculation perspective.
Past
When your assignment is managing one of the new establishments, these will be the benchmarks you start with, and you refer to. So, you will start in your new venue, as a point of reference, with all the same set-up of costs and decisions as in the past. At the time you take your own decisions, you can roll out your new ideas, and concepts in full.
→ Go! Following the Introduction to the Hotel? Step 10/10 is the page Staff page, click here.
→ GO! Top of this page . . . Emerald Forest Hotel offer an emerald hotel experience! Run your own hotel in this management simulation . . .
