Table 14.2
Service budget example: Superior Hotel budget
SUPERIOR HOTEL BUDGETINCOMEExplanationLastyearCurrentyearQtr 1
Jan – MarQtr 2
Apr – JuneQtr 3Jul – SepQtr 4
Oct – DecNextyearRoomsNo. of rooms×average spend949,0001,022,000201,600235,872303,600331,2001,072,272DiningNo. of rooms×average spend365,000365,00072,00081,900101,200110,400365,500BarNo. of rooms×average spend73,00073,00014,40016,38020,24022,08073,100Business servicesNo. of rooms×average spend29,20029,2005,7606,5528,0968,83229,240Total Income1,416,2001,489,200293,760340,704433,136472,5121,540,112EXPENDITUREDirect costsFood cost of sales35% of dining income127,750127,75025,20028,66535,42038,640127,925Liquor cost of sales40% of bar income29,20029,2005,7606,5528,0968,83229,240Total cost of sales156,950156,95030,96035,21743,51647,472157,165Salaries and wagesHotel staffincreases 3% p.a.212,000218,36056,22856,22856,22856,228224,911Dining staffincreases 3% p.a.75,00077,25019,89219,89219,89219,89279,568Office staffincreases 4% p.a.35,00036,4009,4649,4649,4649,46437,856Managementincreases 5% p.a.50,00052,50013,78113,78113,78113,78155,125Fuel, light and waterHistorical/estimate12,00014,0004,0004,0004,0004,00016,000LaundryHistorical/estimate8,0009,0002,5002,5002,5002,50010,000CleaningHistorical/estimate6,0007,0002,0002,0002,0002,0008,000Repairs and maintenanceHistorical/estimate12,00020,0004,0004,0004,0004,00016,000Advertising and promotionHistorical/estimate10,00012,0003,0003,0003,0003,00012,000TelephonesHistorical/estimate4,0005,0001,5001,5001,5001,5006,000ConsumablesHistorical/estimate5,0005,0001,5001,5001,5001,5006,000Other expensesHistorical/estimate6,0007,0002,0002,0002,0002,0008,000Total expenditure591,950620,460150,825155,082163,381167,337636,624Net profit before interest824,250868,740142,935185,622269,755305,175903,488