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Occupancy is 7% above the budget. The average room rate 1% lower than budget.
The Hotel recorded a Net Profit of £7.9k for July and (£87.5k) loss YTD after adjusting for Kurdish
Festival income and expense and GFTU gift Aid.
Hotel Costs vs Budget
The following summarises the main YTD cost variances for discussion
Wages & Salaries
Wages & Salaries (31.7k) higher than budget YTD. (0.7k) higher for the month of July 17
Cleaning & Laundry
Cleaning & Laundry YTD favourable variance of £5.3k
Marketing
The Marketing costs are £15.5k below the budget as Tim is trying to keep all the cost under
control.
Garden Expenditure
Garden Expenditure Costs are (£1.5k) higher than budget for YTD . The budget for Garden
expenditure does not include Alison salary who left in Jan 17. New Gardeners invoices go
under this code hence garden costs are likely to be higher than budget in next coming
months .
Rates & Insurance
Rates & Insurance costs are in line with the budget for July 17 and (1.8k) higher than budget
YTD this is due to business rates charges increase by 45% in 2017 compare to 2016 (Annual
rate bill for 2017: £46,243.64,Rate for 2016: £31,808)
Commissions
Due to increase in occupancy the commissions are (£4.7k) higher than expected YTD
Heat, Light & Power
Heat Light & Power costs are £2.9k lower than the budget for July and £2.5 lower than
budget YTD . As we are in summer now theses costs are expected to be lower than budget
and we have purchased new boiler. With greater efficiency a new boiler will keep our
heating bills down.
Donation
Hotel pays £4k to GFTU on monthly basis as a gift aid. There was no budget for this item.
Professional fees
Professional fees are in line with the budget for July 17
IT Expenses
IT Expenses are overspent by(£ 8.4k )for YTD this is partly due to IT issues that Hotel had
been facing i.e. rewiring & cabling, Tony Johnson charges, new anti-virus costs, Entergrity
SLA & Purchase of networking switch
Repairs & Maintenance
Repair & Maintenance overspent by (£2.5k) however Kitchen Repairs & replacement
underspent by £1.9k
Telephone & Internet
Telephone & internet costs are higher than budget by(£ 4.5k) YTD. There is a charge of £3.1k
from BT for fibre broadband.
GFTU Salary Contribution
GFTU salary contribution is in line with the budget.