Hotel Financial Reporting in Practice

Part IV introductionDepartmental Expenses and Profit Conversion

Do not call a department efficient or inefficient until the revenue base, reporting home, named expense lines, operating driver, control evidence and conversion result agree.

Reading sequence

Chapters in this Part

15Departmental Expense LogicPart III has closed the revenue side of Hotel Blue Moon. The hotel has a classified Actual, Budget and Prior-Year revenue base; room, cover, attendee, treatment and transaction statistics have been reconciled;…16Rooms Department Expenses and Profit ConversionHotel Blue Moon sold 750 more occupied rooms than in the comparison month. Rooms Revenue increased by \$120,000, and the summary page looks strong. Yet Rooms Departmental Profit increased by only \$25,000.…17Food and Beverage Cost Control and Profit ConversionFrom purchase and inventory to plate, glass, operating supplies, and departmental profit18Banquet and Event ExpensesFrom BEO promise and event specification to Schedule 2 cost, contribution, and closeout19Other Operated and Minor Operated Expense ControlAncillary departments, operating models, line-level controls, and profit conversion