1. Introduction
This report indicates that how the hotel Pluto operates general departments for high level of performance within 3 years. Moreover, it will suggest diverse ways and strategies for next year 4. Now the PLUTO is 4 star hotel and built all of extra facilities except for room and restaurant extension. In the first year, the Pluto hotel had a difficulty about financial problems because of spending much cash for extra facilities and refurbishment. However, in year 2 and 3, the Pluto overcame and achieved high level of ROCE and occupancy rate. For year 4, this report will suggest diverse ways and strategies for improving the performance of all of departments.
2.0 Performance and financial analysis
2.1Total hotel revenue and total hotel net income
In year 1, the PLUTO had serious financial problems and the hotel faced with bankruptcy. At that time, the total revenue for year 1 was $6,134,334 and net income was $ -1,167,044. It is because of refurbishment and extra facilities. Especially, January of year 1, the PLUTO spent almost $1,300,000 for refurbishment. This situation leads the PLUTO to get minus net income.
In year 2, the total revenue for 2 year was $10,170,111 and net income was $2,153,471. The hotel recorded high level of performance (increase of room revenue and sales of F&B) and had plan to save enough cash for extra facilities in year 2.
In year 3, hotel achieved the highest performance. Total revenue was $12,338,449 and net income was $2,729,299. Especially, in august of year 3, hotel had the highest performance about both total revenue and net income.
2.2 Rooms department revenue and rooms net income.
Within 3 years, the total rooms revenue and net income had almost same pattern. When the total rooms revenue have increased, net income also have increased. In year 1, the total room revenue was $ 2,812,297 and rooms net income was 1,686,923. This can be defined as rooms net income was near 60% of profit from room revenue. Even if the Pluto hotel spent too much cash for refurbishment, that attribute high level of rooms revenue in year 1.
In year 2, total room revenue was $4,810,360 and net income was $3,379,489. Through the conference room and rates of room leads high level of performance. Particularly, total room revenue and net income increased sharply between January to February in year 2.
In year 3, hotel built almost all of extra facilities and had great occupancy rate. This leaded high total room revenue and net income. Exactly, total room revenue for year 3 was $6,063,379 and net income for year 3 was $4,503,030. In September of year 3, hotel picked the highest room revenue and net income.
2.3 Food & beverage departments revenue and food & beverage net income
Like rooms revenue, F&B revenue also have improved within 3 years. The total F&B revenue of year 1 was $3,113,510 and the F&B net income of year 1 was $1,273,633. In year 1, the PLUTO provided low price meals and chooses the cheap supplier. This leaded low total F&B revenue and net income.
In year 2, the PLUTO built mini-bar and that leads positive affects to sales of liquors. Exactly, total sales of liquor in year 1 were 137,837 and total sales of liquor in year 2 were 156,045. The most interesting thing is sales of meal. In year 1, hotel sold 48,349 meals and, the total net income was $1,273,633. In year 2, although hotel sold only 46,512 meals less than year 1 and the total F&B net income was $2,210,551. This figures could be defined as depends on meal’s price, type and suppliers, total F&B revenue and net income could different.
From year 2 to year 3, hotel used menu type 3 and supplier 2, and this decision leaded almost same as total F&B revenue and net income. Precisely, total F&B revenue for year 3 was $4,977,003 and total F&B net income for year 3 was $2,302,836
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