Hospitality facilities are associated with several types of costs. They must be developed and constructed. Once Occupied, they must be operated. And eventually, they must be renovated and modernized . As Each of this steps involved its own kind of expenses it is very important to have a proper budget for any hotel.
The facilities of the modern hospitality industry vary greatly. Budget and economy lodging operations have relatively simple physical plants, while convention, resort, and luxury hotels may resemble small cities in their complexity.
Such differences in complexity and in the overall luxury level of finishes and furniture contribute significantly to the differences in the construction costs of various types of facilities.
The development and construction of a hotel represents a commitment of capital by an owner who expects a return on this investment. This expected return may involve two elements; Operating profit ( from the sale of rooms, F& B, meeting services etc. ) and real estate appreciation.
To provide both type of return, the facility must be operated and maintained in a manner that maximizes the potential profit and appreciation value of the building.
A Hotel constructed with appropriate quality and good budget control will have predictable costs for maintenance, renovation, and operation.
Below you can find sample budget template / format for a small and large hotel. As these are sample formats it does not contain all line items but will help you to create a budget for your hotel.
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