Hotel Directors Meeting March 2020

Hotel Actual Costs vs Budget

The following summarises the main cost variances to budget for discussion.

Direct Costs

Wages £6k adv . A Payroll monitoring KPI sheet is now included with the Management Reports which tracks ‘Variable’ paid staff in F & B House-keeping & Kitchen departments.

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Overheads

Overall Overheads were £60k which was equal to budget and £8k lower than 2018. This was mainly thanks to a write-back of Electricity Accruals, the main variances were as follows: Wages £4k fav Site Services are now payrolled by GFTU and recharged as Site Services  Marketing Spend £2k fav Marketing Support is recharged by GFTU but expenditure was lower than budget  Garden Expenditure £3k fav This is a correct to the analysis of Site services charges which were costed to Garden Expenditure in January (see Site Services below)  Kitchen Repairs £2k fav Low expenditure on equipment  Repairs & Maintenance £5k fav There were very few repair costs in the month.  Rates & Insurance (£3k) adv. The budget for Rates and Insurance increases later in the year.  Commissions £4k (Adv) Higher card processing Charges and Commissions to on-line booking agencies  Site Services This represents two month charges of Site Services, these costs were charged to Garden Expenditure in January, and were budgeted in Salaries and Wages 

Hotel Forecast Profit & Cash Flow

A Profit & Cash Flow Forecast has been prepared which shows Jan/Feb Actuals. Tim Marshall has NOT had the opportunity to review the forecast 2020. February Cash Flow was slightly better than expected due to higher deposit trading and collection of account client debts. The Hotel has limited facilities and has negotiated carefully with suppliers through February as some creditors were extended. HMRC will be paid the outstanding £25k VAT liability in March as cash flows have improved.

Standing Orders have been set-up for 2020 monthly Inter-Co recharges