Financial structuring for profitability in the hotel
Challenge
The independent 3-star hotel with more than 100 rooms had strong occupancy, but the profit was volatile.
There was no clear financial structure – the activities were not divided by departments, and the owners could not accurately assess which part of the activities generated profit and which incurred losses.
Problem Solving
We engaged as an external Chief Financial Officer (CFO) and created a clear financial structure:
• We implemented reports according to a unified hotel accounting system (USALI)
• We categorized all activities: rooms, catering, SPA, administration, etc.
• We started monitoring key performance indicators (GOP, RevPAR, departmental margins)
Results
✔ A clear operational picture by departments
✔ Identification of loss-making segments (especially F&B) and inefficient use of labor
✔ A targeted action plan for increasing GOP margin
Client Insight
„Now we can clearly see where we earn and where we lose. Decisions are no longer made on intuition.“
– Hotel Manager