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Hotel Long Term Annual and Monthly Operational Budgets Outline

A budget is a plan for utilizing resources of all kinds, including cash, tools, materials, and labor, in order to operate a hotel in its most effective manner. Budgeting is sometimes described as a financial expression of the General Manager’s (GM) business strategy. Developing a helpful budget does take time; however, good budgets assist the hotel in many ways, including:

  • Allowing management to anticipate and prepare for future business ­conditions
  • Providing a communication channel whereby the hotel’s objectives are passed along to its various departments
  • Encouraging department managers who have participated in the ­preparation of the budget to establish their own operating objectives and evaluation techniques and tools
  • Providing the GM with reasonable estimates of future expense levels, and serving as a tool for determining future room rates and other price ­structures
  • Helping the controller and GM to periodically carry out a self-evaluation of the hotel and its progress toward achieving its financial objectives

In the hotel industry, the operating budgets prepared by GMs and their ­Controllers generally include:

  • Long-range budgets
  • Annual budgets
  • Monthly budgets

Create a detailed, 525-word outline of the items to consider when developing long-term, annual, and monthly operational budgets.