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# Introduction

214312977.xls.ms_office

## HOTEL AND MOTEL 12-MONTH BUDGET

IMPORTANT NOTE: You cannot customize this software by adding line items or accounts due to the inter-linked worksheets
The accounts used in the software are based on the industry standard (if one exists).
Required Inputs: All required inputs are highlighted in light blue.
Instructions:
1. Before you start entering data, explore the entire workbook and understand how it operates.
2. All instructions are highlighted in green.
3. Make sure you read the instructions in each worksheet before filling in data.
4. For this sheet, enter all inputs highlighted below in blue.

Prepared by
Year of analysis

Sample Hotel
2004

## This workbook contains the following worksheets:

1. Introduction
2. Expense Breakdown
3. Assumptions
4. Inc. Stmt. (Income Statement)
5. Output Ratios

## This workbook contains the following Macros:

1. CTRL+SHIFT+F : Fills remaining month's with same value as first month.
To perform this function, select the first month cell and perform the function (CTRL+SHIFT+F).
What is a macro?
A macro is a set of commands or functions that simplifies tasks that are repeated in Excel.
If you want to use this feature, you must click "Enable Macros" when you open this workbook.
If your version of Excel does not allow macros, then you can manually enter the values.

2003 Board of Regents of the University of Wisconsin System, d/b/a Division of Cooperative Extension of the University of Wisconsin-Extension

Expense Breakdown

214312977.xls.ms_office

Sample Hotel
EXPENSE BREAKDOWN
Required Inputs: All required inputs for this sheet are highlighted in light blue
Instructions:
1. For each of the accounts below, specify whether it is Fixed (F), Variable (V), or both Fixed and Variable (B)
2. If an account is fixed, you will be entering a specific dollar amount in the assumptions sheet.
3. For the variable accounts, you will be expressing the amount in percentage of sales.
4. For accounts that are both fixed and variable, you will be entering a fixed dollar amount and a percentage of sales amount
Account
Rooms Expense
Food and Beverage Expense
Telephone Expense
Other Department Expense
Marketing Expense
Franchise Fee
Energy Expense
Maintenance Expense
Management Fees
Property Taxes
Insurance Expense
Rent Expense
Interest Expense
Depreciation/Amortization Expense
Other Fixed Charges

Type of Account*
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v
v

*Variable Costs = V
Fixed Costs = F
Both Fixed and Variable = B
Now click the "Assumptions" tab below.

## Variable accounts are those that are

dependant on another value. For example, if
you expect to spend more on maintenance
as more rooms are occupied, then
maintenance expense has a variable
component.
Fixed accounts do not change with sales

Assumptions

214312977.xls.ms_office

Sample Hotel
ASSUMPTIONS
Required Inputs: All required inputs for this sheet are highlighted in light blue.
Instructions:
1. Fill in all the cells highlighted in light blue. Remember the inputs are for the corresponding month mentioned in the "Month" column.
2. When entering your average room rate, you can save time by using the fill-in macro. Simply, enter a value in the first year, select that cell and press the 3 keys: CTRL+SHIFT+F
3. You must apply the fill-in macro only when selecting the first month cell.
4. Next fill in the account assumptions listed below "Average Room Rate". Use historical data if available or industry averages.
5. When entering fixed dollar values for the accounts, you can save time using the fill-in macro.
6. If you classified an account as fixed in the "Expense Breakdown" sheet, you should only enter a fixed dollar amount in this sheet for that account
7. Similarly, enter only percentage values for variable accounts. If a account is both fixed and variable, enter both dollar amount and percentage.

Room Sales:
Days Open in a Month
Rooms Available per Day
Occupancy Percent
Average Room Rate

Jan

Feb

Mar

Apr

May

31
35
25.0%
\$50.00

28
35
25.0%
\$50.00

30
35
25.0%
\$50.00

30
35
25.0%
\$50.00

30
35
25.0%
\$50.00

Month
Jun

Jul

Aug

Sep

30
35
25.0%
\$50.00

30
35
25.0%
\$50.00

30
35
25.0%
\$50.00

30
35
25.0%
\$50.00

Food Sales

Fixed \$ Amount
% of Room Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

Beverage Sales

Fixed \$ Amount
% of Room Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

Fixed \$ Amount
% of Room Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

Telephone Sales

Fixed \$ Amount
% of Room Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

## Minor Department Sales

Fixed \$ Amount
% of Room Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

Rentals/Other Income

Fixed \$ Amount
% of Room Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Room Sales

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

% of F&B Sales

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

% of Telephone Sales

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

% of Other Sales

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

25.00%

Rooms Expense

## Food and Beverage Expense

Telephone Expense

## Other Department Expense

Assumptions

Marketing Expense

Franchise Fee

Energy Expense

Maintenance Expense

Management Fee

Property Taxes

Insurance Expense

Rent Expense

Interest Expense

## Other Fixed Charges

214312977.xls.ms_office

% of Total Sales

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

% of Total Sales

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

## Now click the "Inc. Stmt." tab below

Inc. Stmt.

214312977.xls.ms_office

Sample Hotel
INCOME STATEMENT
Required Inputs: None
Year:
Jan

Feb

Mar

Apr

May

2004
Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Rooms Available
Occupancy
Average Room Rate

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25.0%
\$50.00

35
25%
\$50

Revenue:
Room Revenue
Food
Beverage
Other Food and Beverage
Telephone
Minor Departments
Rentals and Other Income

13,563
678
678
678
678
678
678

12,250
613
613
613
613
613
613

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

13,125
656
656
656
656
656
656

157,063
7,853
7,853
7,853
7,853
7,853
7,853

Total Revenue

17,631

15,925

17,063

17,063

17,063

17,063

17,063

17,063

17,063

17,063

17,063

17,063

204,181

Departmental Expenses
Rooms
Food and Beverage
Telephone
Other Expenses

3,391
509
170
339

3,063
459
153
306

3,281
492
164
328

3,281
492
164
328

3,281
492
164
328

3,281
492
164
328

3,281
492
164
328

3,281
492
164
328

3,281
492
164
328

3,281
492
164
328

3,281
492
164
328

3,281
492
164
328

39,266
5,890
1,963
3,927

4,408

3,981

4,266

4,266

4,266

4,266

4,266

4,266

4,266

4,266

4,266

4,266

51,045

13,223

11,944

12,797

12,797

12,797

12,797

12,797

12,797

12,797

12,797

12,797

12,797

153,136

Marketing
Franchise Fees
Energy
Maintenance

1,763
882
882
882
882

1,593
796
796
796
796

1,706
853
853
853
853

1,706
853
853
853
853

1,706
853
853
853
853

1,706
853
853
853
853

1,706
853
853
853
853

1,706
853
853
853
853

1,706
853
853
853
853

1,706
853
853
853
853

1,706
853
853
853
853

1,706
853
853
853
853

20,418
10,209
10,209
10,209
10,209

5,289

4,778

5,119

5,119

5,119

5,119

5,119

5,119

5,119

5,119

5,119

5,119

61,254

## Gross Operating Profit

Management Fees
Income before Fixed Charges

7,934
882
7,053

7,166
796
6,370

7,678
853
6,825

7,678
853
6,825

7,678
853
6,825

7,678
853
6,825

7,678
853
6,825

7,678
853
6,825

7,678
853
6,825

7,678
853
6,825

7,678
853
6,825

7,678
853
6,825

91,882
10,209
81,673

882
882
882
882
882
882

796
796
796
796
796
796

853
853
853
853
853
853

853
853
853
853
853
853

853
853
853
853
853
853

853
853
853
853
853
853

853
853
853
853
853
853

853
853
853
853
853
853

853
853
853
853
853
853

853
853
853
853
853
853

853
853
853
853
853
853

853
853
853
853
853
853

10,209
10,209
10,209
10,209
10,209
10,209

5,289

4,778

5,119

5,119

5,119

5,119

5,119

5,119

5,119

5,119

5,119

5,119

61,254

Departmental Profit

Fixed Charges
Property Taxes/Fees
Insurance
Rent
Interest
Depreciation/Amortization
Other Fixed Charges
Total Fixed Charges
Income Before Taxes

1,763

1,593

## Next, click the "Output Ratios" tab below.

1,706

1,706

1,706

1,706

1,706

1,706

1,706

1,706

1,706

1,706

20,418

Sample Hotel
OUTPUT RATIOS
Required Inputs: None
Account
Food Sales
Beverage Sales
Other Food and Beverage Sales
Telephone Sales
Minor Department Sales
Rentals/ Other Income
Rooms Expense
Food and Beverage Expense
Telephone Expense
Other Department Expense
Marketing Expense
Franchise Fee
Energy Expense
Maintenance Expense
Management Fees
Property Taxes
Insurance Expense
Rent Expense
Interest Expense
Depreciation/Amortization Expense
Other Fixed Charges

% of Sales
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
25.00%
25.00%
25.00%
25.00%
10.00%
5.00%
5.00%
5.00%
5.00%
5.00%
% of Total Sales
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%

% of Room Sales
% of Room Sales
% of Room Sales
% of Room Sales
% of Room Sales
% of Room Sales
% of Room Sales
% of F&B Sales
% of Telephone Sales
% of Other Sales

\$ Total
7,853
7,853
7,853
7,853
7,853
7,853
39,266
5,890
1,963
3,927
20,418
10,209
10,209
10,209
10,209
10,209
10,209
10,209
10,209
10,209
10,209
10,209

You can use the above outputs as assumptions for the 5-Year Proforma Financial Projection
This is the end of the workbook