Financial Modelling Tool for Hotel Owners

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

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

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)

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)

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)

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)

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)

Component: Personal Investment

Sub-components:

• Initial Owner Investment – (£500,000)
• Investor Contributions – (£300,000 from private investors)

Component: Future Funding (Optional)

Sub-components:

• Bridging Loan for Expansion – (£250,000, short-term high-interest loan)

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.