Financial Modelling Tool for Hotel Owners
As a hotel owner, understanding how your cash flow may fluctuate throughout the year and knowing when to make strategic decisions is essential. Brixx offers the financial tools you need to gain timely and crucial insights to guide your hotel operations and growth.
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Model your hotel business in Brixx - see how quickly your finances can make sense!
We are working on creating this template in Brixx. Although it isn’t available just yet, you can follow the guidance below to help get started. If you need any further assistance, don’t hesitate to get in touch – we’re here to help!
Project Setup
- Project Name: Hotel Business Financial Model
- Time Period: Monthly (ideal for tracking revenue, operational expenses, and occupancy rates)
Income Components
- Component: Room Revenue
- Sub-components:
- Standard Room Revenue – (£80/night, 50 rooms, 70% occupancy) = £84,000/month
- Suite Revenue – (£200/night, 10 rooms, 60% occupancy) = £36,000/month
- Conference Room Hire – (£500/day, 10 bookings/month) = £5,000/month
- Sub-components:
- Component: Additional Income
- Sub-components:
- Restaurant & Bar Sales – (£25 per guest, 50% of guests dine in) = £50,000/month
- Spa & Wellness Services – (£60 per session, 300 sessions/month) = £18,000/month
- Event Hosting (Weddings, Corporate Events) – (£3,000 per event, 4 events/month) = £12,000/month
- Parking Fees – (£10/day per car, 20 cars/day) = £6,000/month
- Late Check-Out Fees – (£30 per late check-out, 50 bookings/month) = £1,500/month
- Sub-components:
Expenditure Components
- Component: Operational Costs
- Sub-components:
- Mortgage or Rent – (£20,000/month)
- Staff Salaries – (£60,000/month for reception, housekeeping, kitchen, management)
- Utilities (Water, Electricity, Gas, Internet) – (£8,000/month)
- Cleaning & Maintenance – (£5,000/month)
- Hotel Management Software – (£300/month)
- Insurance (Building, Liability, Employee Insurance) – (£2,500/month)
- Laundry Services – (£4,000/month)
- Sub-components:
- Component: Administrative Costs
- Sub-components:
- Marketing & Advertising – (£5,000/month for online ads, partnerships)
- Legal & Accounting Fees – (£1,500/month)
- Licensing & Permits – (£2,000/year, allocated as £166/month)
- Sub-components:
Asset Components
- Component: Fixed Assets
- Sub-components:
- Hotel Property – (£3,000,000, appreciating at 2% annually)
- Furniture & Fixtures – (£250,000, depreciated over 10 years)
- Kitchen Equipment & Bar Setup – (£100,000, depreciated over 5 years)
- Spa & Wellness Equipment – (£50,000, depreciated over 7 years)
- Sub-components:
- Component: Current Assets
- Sub-components:
- Cash Reserves – (Starting balance + monthly surplus)
- Accounts Receivable (Outstanding payments from event bookings, corporate clients) – (Variable)
- Inventory (Food & Beverage Stock, Toiletries, Linens) – (£10,000 at any given time)
- Sub-components:
Funding Components
- Component: Loans and Financing
- Sub-components:
- Commercial Mortgage – (£2,500,000 at 5% interest, 20-year term)
- Business Loan for Renovation – (£200,000 at 6% interest, 5-year term)
- Sub-components:
- Component: Personal Investment
- Sub-components:
- Initial Owner Investment – (£500,000)
- Investor Contributions – (£300,000 from private investors)
- Sub-components:
- Component: Future Funding (Optional)
- Sub-components:
- Bridging Loan for Expansion – (£250,000, short-term high-interest loan)
- Sub-components:
Scenario Planning in Brixx
- Occupancy Rate Scenarios
- Model 50%, 70%, or 90% occupancy to see the impact on revenue.
- Seasonal Variations
- Adjust room rates for peak seasons (e.g., summer, holidays) and low seasons.
- Cost Increases
- Test scenarios where wages, utility costs, or food expenses increase by 10%.
- Expansion Planning
- Model a scenario where additional rooms or amenities (e.g., a rooftop bar) are added.
Dashboard & Reporting
- Cash Flow Report
- Visualise monthly revenue vs. expenses, highlighting net profit.
- Balance Sheet
- Track growing asset values while seeing liabilities reduce over time.
- Profit & Loss Statement
- Display total revenue, operational costs, and net profit per fiscal year.
- Custom KPIs
- Average Revenue Per Room (ARR): Total room revenue ÷ rooms sold.
- Occupancy Rate: (Occupied rooms ÷ available rooms) × 100.
- Gross Operating Profit Per Available Room (GOPPAR): (Total revenue – operational expenses) ÷ total available rooms.
Who can use this Brixx template?
- Hotel owners
- Hospitality managers
- Boutique and independent hotel operators
Brixx is a great tool for:
- Anyone managing the financial planning and budgeting for a hotel business
- Hotel owners, accountants, or business managers overseeing revenue, expenses, and funding
- Hospitality professionals looking to optimise room occupancy, pricing strategies, and cash flow
What are the benefits to hotel owners?
- This template is tailored to the hospitality industry, covering all aspects of hotel operations and financial planning
- Effortlessly model business cash flow, room revenue, operational costs, and financing expenses
- Easily interpret results and graphs to assess the profitability of various pricing and occupancy strategies
- Quickly evaluate the impact of new income streams, such as event hosting, restaurant services, or spa treatments
- Receive immediate feedback when testing different scenarios like seasonal pricing changes, renovations, or shifts in customer demand
Strategic forecasting in Brixx
- Calculating the profitability impact of varying room rates and occupancy levels
- Demonstrating projected earnings to support business loans and investment decisions
- Forecasting and budgeting for hotel maintenance, renovations, and staff salaries
- Anticipating financial requirements for marketing campaigns, expansions, or new service offerings
- Evaluating the impact of market trends on bookings, operating costs, and revenue streams
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"Brixx is great for analysing at which point I can recruit new staff."
Nikki Bisel, Seafoam MediaGet started with the best financial projection software - today!
Financial modelling software is essential for hotel owners, providing the insights needed to plan and manage hospitality businesses effectively. By forecasting costs, hotel operators can gain a clearer picture of their financial landscape. Additionally, predicting room occupancy rates, seasonal revenue fluctuations, and operational expenses enables informed decisions on pricing strategies, staffing, and resource allocation.
The ability to identify market trends, adjust room rates, and plan for fluctuations in demand further strengthens a hotel’s long-term success. With over 20 years of business modelling experience, Brixx stands out as a trusted solution, offering a robust set of features to help hotel owners confidently navigate the complexities of financial planning.
Investing in expert financial modelling software like Brixx empowers you to optimise revenue, manage expenses, and strategically forecast the future of your hotel business.