Financial Reporting

November 3, 2024

Hospitality Financial Leadership – What Are CAP Rates and How to Use Them

A capitalization rate, or cap rate, is a measure of the income return on an asset, such as hotel or rental property, relative to its purchase price. It is calculated by dividing the net operating income (NOI) of the asset by its purchase price. That’s what this piece is all about. It also must be said from the get-go that…

Financial Reporting Hotel Finance Strategy Hotel Financial Leadership

September 29, 2024

Hospitality Financial Leadership – Managing F&B Expenses and How to Record Them on Your P&L

As I have said in many of my earlier posts, Food and Beverage is special. And I mean that with all sincerity because it’s an integral part of our business especially with a full service offering. However, there are challenges that we need to overcome and one big one is how to report the profit and loss activity so that…

Financial Reporting Hotel Financial Leadership Hotel Internal Controls Hotel Revenues

September 8, 2024

Hospitality Financial Leadership – Why You Want to Use a Rolling Forecast

Rolling forecasts are nothing new but I must point out that most hotels don’t use them, and they really should. It’s an incredibly useful tool that is literally worth its weight in gold. That being said, it doesn’t weigh much but once you start to use one it’s an indispensable tool that you must have each month, and its impact…

Financial Reporting Hotel Financial Leadership Hotel Internal Controls Hotel Revenues

June 30, 2024

Hospitality Financial Leadership – The Top 10 Accounts Receivable Controls

“AR” as we commonly refer to the sub department of the accounting function is a mainstay in any larger group-based hotel. In these juggernauts the importance of efficiently collecting your money is mission critical. Not only do we take the chance that the group will come and stay after we hold all those…