EC Papers September 2017

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. 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.  Professional fees Professional fees are in line with the budget for July 17  IT Expenses