Renovations

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Renovations and new ideas

There are some problems in the hotel concerning the maintenance: some additional maintenance is well advised!
If you want to renovate parts of your hotel it is of importance to get grip on the costs. The costs are related to the investments made (the costs will be the depreciation and -sometimes the interest) and to the operational costs (staff etc.) per year. Check the page Investments and the very handy pdf which give detailed overviews of most logical costs to be made: you can check the list

estimating hotel costs.

estimating hotel costs. Do not focus too much on details: the file does give you some indication of what costs might be. Try to be realistic, how much things do cost, depend on so many things and is not easy to answer. And don't be penny-wise and pound foolish! And in all decisions skip all decimals for sure. 

This list is not the truth, but gives you an indication. Of course feel free to use other sources and adapt suggested-offered prices. And, please focus on the 'big picture' so it is not about small amounts: the turnover is several million and also groups of posts are all more in hundreds or even thousands of euros. Think as a company, not as a private person. You can not just buy things in the supermarket: things should keep up healthy and safety standards as well as endurance and fitting in a maintenance plan. So all items will be much more expensive than your private comparable buys.

Do not get lost in too many details on prices and be sure to look and the costs of these kinds of investments.
If things are not to be found here, go on the internet and search for an indication of costs related to your plans. Give your source and put the link in your explanation in the Team file.
The same goes for new ideas and developments: be realistic in estimating the costs and the revenues. Always relate to existing number and known or proven costs. In your explanations much of this can be explained at decision nine extra depreciation costs renovation maybe at decision number 8. Decision number 10, other costs might be of use. And you do have free space to inform your coach on special issues each year.

Costs of the new investments

You have no problems on liquidity, so only bother about the costs of the investment, the depreciation! The maximum investment per year is set at € 900,000 with standard 4 years for depreciation. So the maximum new investments to be made are € 3,600,000 over four years, which is a high amount, looking at the past. For now, we will refrain from other costs linked to investments, like interest.

Delay routine

The focus of your management should, of course, be on the continuing the hotel. So see costs and revenues from new activities always in relationship to the height of existing costs and revenues. So it is all about thousands not about hundreds of euros. So do not specify small costs and keep the overview. Exactly understanding this shows entrepreneurship. So do not act penny wise and pound foolish.
Please keep everything in perspective: so do NOT go too much into details: so for renovating the bathroom for instance use

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