You will need to write a month end Pnl critique about the numbers you have achieved every month.
A previous article was about how to Understand the Pnl Statement. If you are not clear about it, go ahead and read the article.
This post is about explaining the Month end Pnl to all stakeholders. If the numbers are above budget, you can breath a sigh of relief and close this post. However if you did not meet your numbers, you need to read this post.
The explanation of your monthly Pnl is the most critical piece of work you will do any given month. With the economy in a slow down mode, you will need to be active to showcase your work in the best possible light.
Here are some tips to tide over the report presentation.
Start with the city scenario
Before you get into the specifics of your hotel, it makes sense to talk about the city. Use the bench marking reports like STR or your own reports to inform about the city. Sometimes your hotel will only perform as good or bad as the overall city, unless you have a unique advantage.
Open with information about what happened in the city, the good and the bad. Then move on to specifics about your hotel.
Talk about revenue
Next you need to focus on revenue line items. Talk about what you did to get the revenue. Explain in details the segments and your action for each segment. Discuss your restaurants in detail and any specific promotion you had.
While discussing about revenue also take a moment to inform about the guest satisfaction score and where you are on social review channels.
If your owner is someone who likes to be in limelight, discuss about the various PR opportunities created.
At times even if the revenue is not meeting budget, if you spend time over the positives and what you achieved the people attending the meeting will see your effort.
Highlight cost saving initiatives
Hopefully you knew at the beginning of the month about the situation on hand and took some action to save cost. Explain in detail the initiatives taken to save variable cost. Fixed cost are mostly fixed however you have opportunities to save on variable cost.
Like any other hotel, the 4 biggest head of expense will be payroll, HLP cost, Food cost, Repairs and maintenance. Make sure you have detailed explanation of these heads.
Discuss the forecast for the next 3 months
Do not wait for the next months critique to talk about the performance.
Discuss the next 3 months forecast, business on books, the potential catering business etc so that the owners/promoters are able to plan their expenses.
If your hotel has a debt service, understand how much it is and what else can you do to bridge the gap.
Times are tough, but it will pass.
Communicate more often during month end PNL critique about what you are doing to increase revenue and save cost.
Take proactive measures to keep your self above water.
What else are you doing to combat the slowdown?