November EC Meeting 2019

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 £63k which were £3k lower than budget and £11k higer than 2018. The main variances were as follows: Marketing Spend £4k fav Please see Marketing Report above, marketing support is now being obtained Leicestershire Promotions and the website bookings.com continues to attract clients.  Repairs & Maintenance £6k Urgent repair work required to underground pumps due to heavy rain.  Rates & Insurance (£1k) adv. The budget for Rates and Insurance appears to have been set too low. The known Annual cost is £73k against the budgeted cost of £62k . The hotel has been contacted by Business Rates valuation office following the commissioning of the new facilities.  Commissions & Card Charges (£4k) adv. Additional Commission charges reflected the increased sales activity were incurred from On-line booking organisations some billed from previous months and the increased charges from credit card settlements  Heat Light & Power £5k fav. Engie Electricity Supplier continue to provide competitive rates although estimated readings have been used. Doug Nichols is now in communication with Total Gas & Power & Ofgem regarding 2018/19 unbilled electricity costs as a County Court Judgement order was lodged.  Garden Expenditure & Repairs & Maintenance £1k fav. General Lower expenditure due to weather conditions 

Hotel Forecast Profit & Cash Flow

A Cash Flow Forecast has been prepared to the end of the year. This includes Tim Marshall’s best estimates of Occupancy Revenues and Expenditure this is attached for your information. The Hotel commissions the new Hotel Extension in June, the improving occupancy and room rates are expected to deliver close to budget performance. As reported Higher Sales and advanced Guest Deposit bookings have also helped to improve the Cash position, there are further comments/information on the Cash Flow Report..