HEATER-AIRCOND

In 2015 The Hotel will be closed for two months to carry some maintenance works and to change the heater/Aircon unit.

Comment if the budgeting process is conforming for the cells in red boxes and answer to the following questions:
i) What has enabled you to detect the element?
ii) Conclusions on both horizontal and vertical analysis
iii) Establish who are justifiable according to budget practices and why
iv) Suggest a figure to replace the error

1
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Year 2014 2015 2016 2017 2018
Number of Rooms 205 205 205 205 205
Room Nights Available 75.030 61.500 74.825 74.825 74.825
Room Nights Sold 54.022 44.280 53.874 54.622 54.622
Days Open 366 300 365 365 365
Occupancy 72 % 72 % 72 % 73 % 73 %
Average Rate 110 112 115 120 125
RevPAR 79 81 83 88 91

REVENUE
Rooms 5.942.376 68,68 % 4.959.360 68,21 % 6.195.510 68,03 % 6.554.670 68,03 % 6.827.781 67,57 %
Food 1.069.628 18 % 12,36 % 892.685 18 % 12,28 % 1.177.147 19,00 % 12,93 % 1.245.387 19,00 % 12,93 % 1.297.278 19,00 % 12,84 %
Beverage 713.085 12 % 8,24 % 595.123 12 % 8,19 % 681.506 11,00 % 7,48 % 655.467 10,00 % 6,80 % 682.778 10,00 % 6,76 %
WiFi Films & other revenue 213.926 3,60 % 2,47 % 178.537 3,60 % 2,46 % 185.865 3,00 % 2,04 % 196.640 3,00 % 2,04 % 204.833 3,00 % 2,03 %
Other Operating Income 713.085 12,0 % 8,24 % 644.717 13,0 % 8,87 % 867.371 14,00 % 9,52 % 983.201 15,00 % 10,20 % 1.092.445 16,00 % 10,81 %
Total Revenue 8.652.099 100,00 % 7.270.422 100,00 % 9.107.400 100,00 % 9.635.365 100,00 % 10.105.116 100,00 %

DEPARTMENTAL EXPENSES
Rooms 1.789.029 30,11 % 20,68 % 1.498.719 30,22 % 20,61 % 2.106.473 34,00 % 23,13 % 1.906.098 29,08 % 19,78 % 2.061.990 30,20 % 20,41 %
Food and Beverage 1.497.479 84,00 % 17,31 % 1.249.759 84,00 % 17,19 % 1.617.028 87,00 % 17,76 % 1.482.666 78,00 % 15,39 % 1.663.248 84,00 % 16,46 %
WiFi Films & other revenue 66.703 31,18 % 0,77 % 57.132 32,00 % 0,79 % 59.477 32,00 % 0,65 % 62.925 32,00 % 0,65 % 65.547 32,00 % 0,65 %
Other Operating Income 45.703 6,41 % 0,53 % 41.713 6,47 % 0,57 % 56.379 6,50 % 0,62 % 63.908 6,50 % 0,66 % 71.009 6,50 % 0,70 %
Total Expenses 3.398.914 39,28 % 2.847.322 39,16 % 3.839.358 42,16 % 3.515.597 36,49 % 3.861.793 38,22 %

DEPARTMENTAL INCOME 5.253.185 60,72 % 4.423.099 60,84 % 5.268.042 57,84 % 6.119.768 63,51 % 6.243.323 61,78 %
0,00 % 0,00 % 0,00 % 0,00 % 0,00 %
UNDISTRIBUTED OPERATING EXPENSES
Admin & General 527.067 8,87 % 6,09 % 431.464 8,70 % 5,93 % 532.814 8,60 % 5,85 % 557.147 8,50 % 5,78 % 580.361 8,50 % 5,74 %
Sales & Marketing 167.277 2,81 % 1,93 % 138.862 2,80 % 1,91 % 179.670 2,90 % 1,97 % 190.085 2,90 % 1,97 % 204.833 3,00 % 2,03 %
Property, Operations & Maintenance 392.791 6,61 % 4,54 % 743.904 15,00 % 10,23 % 402.708 6,50 % 4,42 % 426.054 6,50 % 4,42 % 445.854 6,53 % 4,41 %
Energy 356.543 6,00 % 4,12 % 297.562 6,00 % 4,09 % 247.820 4,00 % 2,72 % 262.187 4,00 % 2,72 % 273.111 4,00 % 2,70 %
Total Expenses 1.443.677 16,69 % 1.611.792 22,17 % 1.363.012 14,97 % 1.435.473 14,90 % 1.504.160 14,89 %

GROSS OPERATING PROFIT 3.809.508 44,03 % 2.811.307 38,67 % 3.905.030 42,88 % 4.684.295 48,62 % 4.739.163 46,90 %
Management Fee 3.487.981 40,31 % 2.579.770 35,48 % 3.576.482 39,27 % 4.281.412 44,43 % 4.333.524 42,88 %
GOP After Management Fee 3.809.508 44,03 % 2.811.307 38,67 % 3.905.030 42,88 % 4.684.295 48,62 % 4.739.163 46,90 %

FIXED EXPENSES
Property Taxes 0 0 0 0 0
Building and Business Interruption Insurance
247.759 4,17 % 2,86 % 206.774 4,17 % 2,84 % 258.313 2,84 % 273.288 2,84 % 284.675 2,82 %
Rent 0 0 0 0 0
Incentive Fee 0 0 0 0 0
Other Fixed Expenses 0 0 0 0 0
Reserve for Replacement 285.817 4,81 % 3,30 % 238.536 4,81 % 3,28 % 297.992 3,27 % 315.267 3,27 % 328.403 3,25 %
Total Expenses 533.576 6,17 % 445.309 6,12 % 556.305 6,11 % 588.555 6,11 % 613.078 6,07 %

EBITDA 3.275.933 37,86 % 2.365.998 32,54 % 3.348.725 36,77 % 4.095.740 42,51 % 4.126.085 40,83 %

BEP 2.377.764,28 € 2.434.555,02 €

Sensibility Ratio BEP 27,5 % 24,09 %
LoS 1.000.000 Profit 4.024.783,91 € 4.053.102,70 €
Sensibility Ratio Profit 46,5 % 40 %