Budgeting & forecasting
The annual budgeting process is critical to any hotel operation. It provides our owners with idea of what they can expect in terms of profitability and cash surplus/deficit, as well as giving CML and the hotel management teams their goals and objectives for the year ahead.
In addition to running reports and analysing past performance, we focus on looking at the future, maintaining three-month rolling forecasts to support that process.
The full range of CML’s skills and experience is used during the budgeting process to ensure that each hotel maximizes its potential in all areas of its operations. From revenue management to F&B operations, we know what works and what needs to be done to deliver profit and increased value.
Modelling
We have developed a robust budgeting model that takes much of the pain out of the process and means that hotels can focus on planning how to achieve their targets as opposed to making the numbers add up.
Annually
On an annual basis, we present hotel owners with the expectations for the year ahead, in terms of profitability, cash flow and capital requirements. We explain the projections in detail and ensure that performance is aligned with expectation.
Quarterly
The first month of the three under review is forecast on a daily basis so that opportunities to adjust room rate in the face of low or high demand are managed.
In addition, on a quarterly basis, we prepare a forecast through to the end of the financial year, which is presented to and discussed with hotel owners, again ensuring that performance and expectation is aligned.
