BUDGET 2007-2008
Zero based budget for revenue. The figures of previous years were not taken as a benchmark. However, current trend was analysed and the occupancy / revenues were worked out.
Month was divided into days and occupancy was worked out. e.g.
Hence average occ. Was taken as 87%
Date OCC % Rns May OCC % RnsTue ( MAHARASHTRA DAY) 1 75 90 Thu 17 95 114Wed (BUDDHA PURNIMA) 2 77 92 Fri 18 81 97Thu 3 95 114 Sat 19 77 92Fri 4 81 97 Sun 20 80 96Sat 5 77 92 Mon 21 90 108Sun 6 80 96 Tue 22 95 114Mon 7 90 108 Wed 23 95 114Tue 8 95 114 Thu 24 95 114Wed 9 95 114 Fri 25 81 97Thu 10 95 114 Sat 26 77 92Fri 11 81 97 Sun 27 80 96Sat 12 77 92 Mon 28 90 108Sun 13 80 96 Tue 29 95 114Mon 14 90 108 Wed 30 95 114Tue 15 95 114 Thu 31 90 114Wed 16 95 114 86.9 3236
May
From April onward there will be some decline in the occupancy. Mostly occupancy at high yield will get affected. Hence, to keep up the occupancy we will have to take some booking at lower ARR. Hence ARR for some month have gone down.
April - August
8751699055951564285%18360Total (Apr 07 - Aug 07)
175770005625312584%3720August
174988805600312584%3720July
169344005600302484%3600June
181238405600323687%3720May
173826005550313287%3600April
RevenueARRRntsOcc.%Total RoomsMonth
September onwards we will introduce new rates like last year which will actualise for October.
8414856065751280588%14640Total (Sep 07 - Dec 07)
209956806800308883%3720December
209088006600316888%3600November
222604806800327488%3720October
199836006100327691%3600September
RevenueARRRntsOcc.%Total RoomsMonth
September - December
Second phase of rate increase will be in January
672873606800989591%10920Total (Jan 07 - Mar 08)
217545606800319986%3720March
220075206800323693%3480February
235252806800346093%3720January
RevenueARRRntsOcc.%Total RoomsMonth
23895291062323834288%43920Total
672873606800989591%10920Jan to March
8414856065751280588%14640Sept to Dec
8751699055951564285%18360April to Aug
RevenueARRRntsOcc.%Avail RoomsMonth
40335441Rev PTR
88%88%Occupancy
4583 6232ARR
176660000 238952910Room Revenue
2006-20072007-2008
In food and beverage also covers were calculated day wise.
LUNCH COVERS FOR SOLITAIRE
DAYS COVERS TOTAL COVERS
GRAND TOTAL
WEEK DAYS
WEEK ENDS
WEEK DAYS
WEEK ENDS
WEEK DAYS
WEEK ENDS
APRIL 20 10 50 30 1000 300 1300
MAY 22 9 50 30 1100 270 1370
JUNE 21 9 50 30 1050 270 1320
JULY 22 9 40 27 880 243 1130
AUGUST 22 9 40 27 880 243 1130
SEPTEMBER 15 15 45 30 675 450 1125
OCTOBER 21 10 45 30 945 300 1245
NOVEMBER 20 10 50 35 1000 350 1350
DECEMBER 19 12 50 35 950 420 1370
JANUARY 23 8 50 35 1150 280 1430
FEBRUARY 21 8 50 30 1050 240 1290
MARCH 21 10 40 25 840 250 1090
15150
DINNER COVERS FOR SOLITAIRE
DAYS COVERS TOTAL COVERS
GRAND TOTAL
WEEK DAYS
WEEK ENDS
WEEK DAYS
WEEK ENDS
WEEK DAYS
WEEK ENDS
APRIL 20 10 60 40 1200 400 1600
MAY 22 9 60 40 1320 360 1680
JUNE 21 9 60 40 1260 360 1620
JULY 22 9 55 40 1210 360 1570
AUGUST 22 9 55 40 1210 360 1570
SEPTEMBER 15 15 60 40 900 600 1500
OCTOBER 21 10 60 40 1260 400 1660
NOVEMBER 20 10 60 40 1200 400 1600
DECEMBER 19 12 65 45 1235 540 1775
JANUARY 23 8 65 45 1495 360 1855
FEBRUARY 21 8 60 40 1260 320 1580
MARCH 21 10 60 40 1260 400 1660
19670
F & B BUDGET 2007-08
April-07 May-07 June-07
COV APC REV COV APC REV COV APC REV
SOLITAIRE 6831 328 22.38 7112 328 23.35 6742 330 22.22
R/SERVICE 2650 223 5.90 2800 214 6.00 2800 207 5.80
BERYL CLUB 2774 217 6.02 2686 223 5.99 2464 211 5.22
C/LOUNGE 1350 148 2.00 1120 152 1.70 1190 151 1.80
BANQUET 7352 510 37.50 6868 495 34.00 8571 490 42.00
TOTAL 20957 352 73.80 20586 345 71.04 21767 354 77.04
July-07 August-07 September-07
COV APC REV COV APC REV COV APC REV
SOLITAIRE 6629 320 21.23 6629 320 21.23 6556 324 21.26
R/SERVICE 2749 215 5.90 2593 216 5.60 2900 207 6.00
BERYL CLUB 2324 226 5.26 2318 223 5.17 2582 217 5.61
C/LOUNGE 1250 152 1.90 1240 153 1.90 1280 148 1.90
BANQUET 6996 520 36.38 6600 500 33.00 7277 505 36.75
TOTAL 19948 354 70.67 19380 345 66.90 20595 347 71.52
October-07 November-07 December-07
COV APC REV COV APC REV COV APC REV
SOLITAIRE 6834 329 22.48 6752 334 22.57 6851 358 24.51
R/SERVICE 2632 224 5.90 2767 213 5.90 2882 212 6.10
BERYL CLUB 2734 222 6.08 3014 225 6.79 2763 221 6.11
C/LOUNGE 1200 150 1.80 1470 153 2.25 1450 162 2.35
BANQUET 6357 495 31.47 7990 515 41.15 11431 525 60.00
TOTAL 19757 343 67.73 21993 358 78.66 25377 390 99.07
January-08 February-08 March-08
COV APC REV COV APC REV COV APC REV
SOLITAIRE 7526 341 25.70 6837 337 23.05 6679 339 22.63
R/SERVICE 2965 206 6.10 2420 215 5.20 2845 207 5.90
BERYL CLUB 2766 221 6.12 2673 223 5.97 2550 226 5.75
C/LOUNGE 1500 160 2.40 1260 151 1.90 1330 158 2.10
BANQUET 10373 535 55.50 8269 520 43.00 7304 510 37.25
TOTAL 25130 381 95.82 21459 369 79.12 20708 356 73.63
925.00359257657TOTAL
488.0051295388BANQUET
24.0015315640CAFÉ LOUNGE
70.0922131648BERYL CLUB
70.3021333003ROOM SERVICE
272.6133381978SOLITAIRE
REVAPCCOVERS
F& B BUDGET 2007-08
59.6255.03 Total
12.4010.55Internet
7.106.29Car rental
1.431.31Business centre
9.598.54Laundry
12.4011.97Telephones
16.7016.37Health club
2007-082006-07
Other Revenue
29.343374.142608.82Total
8.3459.6255.03Others
17.50925.00787.19F&B
35.9888% @ Rs. 623288% @ Rs. 4583Occupancy
35.262389.521766.60Room
% increase2007-20082006-2007
A ) Year 2006 – 07
Actual expenses Rs. 1189 .57 lacs , averaging around Rs. 99.13 lacs per month
Total expenses were around 45.61 % on total sales of Rs. 2608.00 lacs
B ) Year 2007 – 08
Budgeted expenses Rs. 1455.19 lacs, averaging around Rs. 121.27 lacs per month
Total expenses will be around 43.13 % on total budgeted sales of Rs. 3374.14 lacs.
Major increase in the budget of 07-08, compared to actual of 06-07 is explained below.
1.Salaries & Wages
Monthly average for 06-07 – Rs. 28.63 lacs Budgeted monthly average for 07-08 – Rs. 35.24 lacs Monthly Increase of Rs. 6.61 lacs
Monthly impact ( Rs. In lacs ) Increase in Executives Salary 1.50 lacs Performance link bonus to executives 1.05 lacs New Recruitment 2.10 lacs Revision in staff salary 0.92 lacs Increase in Bonus 0.13 lacs
Group gratuity 0.16 lacs Training, HOD performance incentive and staff welfare 0.75 lacs ----------------- Total :- 6.61 lacs
1. Food & Bev. Cost
In 2006 - 07 it is 21 % of F & B sales In 2007 - 08 it is 21 % of F & B sales
6. Heat, Light & Power
For the year 06-07 – Rs. 170.52 lacs For the year 07-08 – Rs. 180.58 lacs Yearly increase of Rs. 10.06 lacs
In 06-07 average rate is Rs. 4.70 per unit & In 07-08 average rate is Rs. 5 per unit. This impact is almost Rs.10 lacs.
Current bill of Tata Power is at Rs. 4.90 per unit, which is taken as base rate for the budget.
Units per day in 06-07 is 9685, whereas in 07-08 is 9897.
4. Repairs & Maintenance
In 2006 – 07 it is Rs. 80.82 lacs In 2007 – 08 it is Rs. 103.65 lacs Yearly increase of Rs. 22.83 lacs This increase is mainly due to new AMC for following new machinery
STP - Rs. 2.16 lacs Water Softner – Rs. 1.20 lacs AC Plant 250 TR – Rs. 4 lacs
AMC of AC low side of Rs. 4 lacs is provided in the budget, although it was not incurred in the current year.
Apart from above almost extra Rs. 5 lacs are taken for Cable royalty, since implications of new TRAI regulations are not yet clear & increase is taken on the provisional basis.
Balance around Rs. 5 lacs increase is for regular repairs & maintenance of building, plant & Machinery, Hardware & Consumables
5. Crockery & Cutlery
In 06-07 - Rs. 7.22 lacs
In 07-08 Rs. 12.75 lacs
In Restaurant, Banquet & Room Service, we need to replace lot of crockery & cutlery as it now due for replacement. In the last year, it was not replaced & we need to replace in the current year
6. Insurance
In 06-07 – Rs. 6.53 lacs In 07-08 – Rs. 10.92 lacs This increase is mainly in Fire Insurance from Rs.3.75 lacs to Rs. 8 lacs. At the time of fire insurance renewal, State Bank may insist on current or market valuation of assets. Book value of asset is Rs.18 crores. This is just a provision made to double the value of assets & thereby premium, in case SBI insist.
7. Advertisement & Sales Promotion In 06 -07 - Rs. 37.11 lacs In 07-08 - Rs. 101.47 lacs
In the last year, due to less food festivals, there were very less advertisements in the newspaper. This year we have budgeted for airline, business & travel trade magazines advertisements. This year brand building expenses are also considered.
Major coverage of newspaper advertisement is considered during the next year.
8. Discount & Commission
In 06 – 07 –Rs. 34.38 lacs In 07 – 08 – Rs. 43.53 lacs
This is approximately 1.30 % of total sales for both the years. This mainly consist of credit card comm, discount & T. A. commission. Since there is increase in budgeted sales over the last year actual, this amount has increased.
1.Travelling Expenses
In 06 - 07 – Rs. 66.62 lacs In 07 - 08 – Rs. 94.85 lacs
In the previous year, very less expenses were incurred on travelling (incurred Rs. 5.46 lacs against budget of Rs. 21 lacs), although it was budgeted for.
This year travelling expenses are budgeted for Rs. 24 lacs.
10. Rates & Taxes
In 06-07 – Rs. 40.08 lacs In 07-08 – Rs. 52.35 lacs
There is increase of around Rs. 5.5 lacs for new sales regional office rent in the region of Delhi, Bangalore, Hyderabad & Chennai.
Additional provision of around Rs. 3.5 lacs is kept for BMC Licence fees increase. Around 25% increase is expected.
1. Office Expenses
In 06-07 Rs. 7.03 lacs
In 07-08 Rs. 14.55 lacs
This increase is mainly on account of additional provision for Kohinoor times printing charges, books for H.R.Dept, Sales office meal and fax internet charges.
KOHINOOR CONTINENTAL * KOHINOOR CONTINENTAL BUDGET FOR 2007-08 (PROVISIONAL)
Actual Monthly Budget Monthly % on Total % increase 2006-07 Average 2007-08 Average Revenue over pr. YrINCOME 2006-07 2007-08Room Rev. 1764.37 147.03 2389.52 199.13 70.82 35.43Food Rev. 788.97 65.75 925.00 77.08 27.41 17.24Misc Rev. 54.66 4.56 59.62 4.97 1.77 9.07Total Rev. 2608.00 217.33 3374.14 281.18 100.00 29.38
EXPENDITURESalaries/W/B 343.50 28.63 422.93 35.24 12.53 23.12
F&B Cost 165.68 13.81 194.25 16.19 5.76 17.24Operating ExpOperating sup 73.71 6.14 73.58 6.13 2.18 -0.18Heat L& P 170.52 14.21 180.58 15.05 5.35 5.90Gas & Fuel 10.15 0.85 10.79 0.90 0.32 6.31Laundry 23.26 1.94 24.53 2.04 0.73 5.46Repairs&Maint 80.82 6.74 103.65 8.64 3.07 28.25Linen Unform 22.52 1.88 15.35 1.28 0.45 -31.84Crockery /CutI 7.22 0.60 12.57 1.05 0.37 74.10Water charges 24.38 2.03 24.43 2.04 0.72 0.21Total op. exp 412.58 34.38 445.48 37.12 13.20 7.97
Adm&GenExpAdvt/Sales Pro 37.11 3.09 101.47 8.46 3.01 173.43Dis. & Comm. 34.38 2.87 43.53 3.63 1.29 26.61Rates &Taxes 40.08 3.34 52.35 4.36 1.55 30.61Tel.exp. 27.91 2.33 30.16 2.51 0.89 8.06Travelling exp. 66.62 5.55 94.85 7.90 2.81 42.37Insurance 6.53 0.54 10.92 0.91 0.32 67.23Printing & stat. 11.27 0.94 12.57 1.05 0.37 11.54Prof fees 34.13 2.84 28.29 2.36 0.84 -17.11Subscription 2.75 0.23 3.84 0.32 0.11 39.64Office Exp 7.03 0.59 14.55 1.21 0.43 106.97Total Adm. Exp 267.81 22.32 392.53 32.71 11.63 46.57Total Expenses 1189.57 99.13 1455.19 121.27 43.13 22.33
G O P 1418.43 118.20 1918.95 159.91 56.87 35.29
G O P% 54.39 54.39 56.87 56.87Occ %Total Rooms 87 87 87 87Occ % Avl. Rooms 88 88 87 87ARR 4611 4611 6232 6232RNS 38268 3189 38343 3195Rooms Available 43309 3609 43920 3660