416 The Best Hotel: Budget development - Summary Report ( 36 marks) - 40 minutes Current Scenario: It is time to have the hotel budget approval; a strategic meeting will be happening where the departments of operations, sales \& marketing, and Finance will have the primary objective to approve the Budget for the following year. Some facts after the first Budget version built: Operations There is a need to hire three more housekeeping, as the occupancy rate and averoge guest per room have increased significantly. The guests have comploined obout the amenities, such as soop, shampoo, and hair conditioner offered. Thus, it should be considered to purchase other brands with higher qualify. The bath towels are old. Also, 50% of the rooms or 200 rooms should have their carpet changed. The Director of Accommodation is requesting approval to hire one more front desk manoger, due to the foct the guests have complained about tront desk services during the checkout, where it has been taking more time than the standard requires. Sales E Markating After research made, the team ligured out there will be three new big hotels opening by June nert year, both combined wil have 700 modern rooms. The current annual ADA in the compethive set is CAD 270 in contiait the new competitors have said they will enter the market, offering CAD 179 as a soft Opening rote, as they want to: There is a need to hire three more housekeeping. as the occupancy rate and overoge guest per rocm have Increased significantly. The guests have complained about the amenities, such os scop, shompoo, and hair conditioner offered. Thus, it should be considered to purchase other brands with higher quality. The bath towels are old. Also, 50% of the rooms or 200 rooms should hove their carpet changed The Director of Accommodation is requesting approwal to hire one more tront desk manager, due to the toct the quests have complained obout front desk services duting the checkout, where it has been taking more time than the standard requires. Soles Br Marketing After reseorch mode, the team figured out there will be three new big hoteds opening by June naxt year, both combined wis hove 700 modern rooms. The current onhual ADA in the competitive set is caD 270 . in controit, the hew compethors have said they wit enter the market, offering CAD 179 as a soft opening rate, as they want to capture new guesta as soon as possible. Considering the scenario mentioned above, the sales team presented a now budget with a decrease in the occupansy iote of 10Pp, from 70% to 60%, additionaliy, the AOR also dropped from CAD 250 to CAD 230 ; therefors, the impoct on room revenues profected will be signiticant, (Hotel has 400 roome). Moreovor, the everits and banquets revenues hoxt a 30% decrease for the nest year budgat or CAD 300.000. The sales team is requesting two more senior professionols to be hired, as they are concerned about the three now competitors which are about to be operating in the market: Finance Tearr It was rrade a budges doto analysis, and the main concern is that the GOP has decreased by CAD 7,000,000 year over year (YoY). Mainly becouse of rewenue-generating-Yoy fell, payrol increased, and vorioble costs atso increased due to Oras commistion and average per guest/ room that rose from t.3 to 21 . The soles team is requesting two more seniec protessiongls to be hired, as they are concerned about the three new competitors which are about to be operating in the market. Finance Team It was made a dudget date analysis, and the moin concern is that the Gee has decreased by CAD 7.000.000 year over year (YOY) Mainly because of revenue-genergting-Yoy fell, payro4 increased, and variable costs aiso increased due to OTAs commission and dueroge per goest/ room that rose from h.3 to 21. The finance team doesf't approve the renovations and assumptions suggested by Operctions and Soles . Morketing departments, as the Director of Finance has soid Nat cosh flow wouid be detrimertat far five manths during the next yeor; if these budiget figures ore oppeoved Directione provided to buld. your fummery Repoet: If you were the Gervetal Manoget, whot solutions and octions would you suggest for each department mentioned glocve? Please write down a lludget summory Repoet to be reported to the board of investors, including the current. scenoris and your sughestion to manage the situatian. Ploase note you are cilowed to change all scenarios above to develop your eudget summory Report (below). making your solid astumptions in the document. Please develop your liudget SUMMARY RLPORT. - (Pleose usi the Answor Shaet. Font Size 3). * Atrochments are optional