Financial Controller (FC) OK, the results for February. For the first time in 14 months we did not make budget. That said, total revenue is very good at $876.000, 11% more than last year. A very nice increase, even if under budget. So, I see it as an indication our budget is just ambitious, and perhaps we can't expect to make it each and every month. Year-to-Date (YTD) we are still over budget, so January included we are 1% over. A quick look down the P&L, at GOP; because what we have been very successful at this month is to keep expenses under control. A few expenses were lower than expected. Of course, it's always a special month, February, what with all the conferences in town and the International Athletic Event (IAE). The associated one-off expenses have of course been budgeted, so the moment they turn out to be less than expected, we keep GOP under control. And we did, the bottom line is that while being $22,000 under our revenue budget, we are just $3,000 under in terms of GOP. So, in January we were nicely over budget, GOP-wise, and unfortunately February erased a bit from that. So that's a quick impression of the final result of February Revenue Manager (DORM) In Rooms we did not make the budgeted revenue. Keep in mind February was the month with the largest budgeted increase versus last year. We did manage to get 105K more than last year, so not quite budget but still an OK increase. The main reason for not making budget is the lower than expected pick-up of the Large Medical Conference (LMC) group, we expected more from that. We received many high room rate cancellations. If you look at our segmentation, you see quite a few room nights less than budget, 325, and also 250 less than last year. Overall in Transient individual business we are 8K over budget; most of this is from the average daily] rate (ADR), S14 over budget. Good segments were 'Corporate', an increase here of $3, and 'Other Discount', which includes our long stays, so our guests who stay more than five nights. Here we were $50 over budget, ADR-wise, so that's positive and $62 more than last year, with an extra 100 nights. In Group Corporate we were on budget in terms of nights, but $22 over our ADR budget. In Group Leisure we were 141 nights under budget, mostly because the tour business did not deliver in February. We are also 58 under our ADR budget there. Overall, we are 40 nights short of budget in Groups, but $2 over budget in rate. A bit surprising is that we are growing in occupancy but not in guest numbers, compared to last year. We did an analysis of the IAE and we sold more doubles then. So, all other weeks and periods we received fewer guests per room FC I noticed an average number of guests per room of 1.25 and I seem to remember it was 1.37 last year, indeed the average for the full year being 1.37, so yes, that's lower DORM During the IAE it was much higher, we had a lot of double occupancy, and 100 guests more. FC And how many nights, compared to last year? DORM 35 nights more. FC And the totals for the LMC, how does that stack up to last year? DORM I still have to prepare that overview. In the end, the organization block remained flat, it's just that we didn't get as many participants in. In the last two weeks before the conference, the other hotels in town didn't keep their rates high, so as I just mentioned, we got a lot of cancellations of people who went to other hotels FC OK. Let's go to Payroll in Rooms. ROOMS DIVISION MANAGER (FOM) I have lower expenses in salaried payroll, but we had to employ more hourly workers because of sick leave and team members taking time off in February. That accounts for the budget variance as we had to schedule people differently. In the Executive Lounge, Etienne, don't know if you would like to add anything but I'd say we are quite on budget there..... Anything worth mentioning? FOOD AND BEVERAGE MANAGER (FBM) I actually don't get these numbers, but as far as I know results should be exactly on budget. FOM They are. But good to know you don't get these figures. Perhaps the results of the (just-opened) Executive Lounge can also be shared with Etienne as he manages these hours even though they sit within my Rooms Division? FC Payroll Housekeeping, Elisabetta, would you like to comment? HOUSEKEEPING MANAGER (HKM) Yes, we saved $1,000 overall; we had some associates on sick leave but that was more than balanced out by salaried people taking time off than budgeted; plus I think we scheduled really well. FC And, of course, occupancy was a bit lower. FOM And a nice average time per room. FOM The hours for extra security during the IAE, are they also included? ASSISTANT FINANCIAL CONTROLLER (AFC) Partly. The hours Danny worked in last week, yes, they are in. The hours during the IAE? No, those are in Administrative and General. FOM Good, so total Payroll Rooms in line with budget even though we had lower occupancy. In the controllables, we see a higher laundry which is the result of our linen replacement in February. We also expect a credit invoice related to this which will make us on budget again, Year-to-Date. Printing and stationary we ordered in February for our new Executive Lounge. Guest Amenities is under budget because we already took an accrual in February of $2,000. ravel agents commission is lower, which is interesting as this usually only seems to go up ... also, uniforms this month, we took an accrual in January so no expenses in February. The Executive Lounge gives me the feeling we are "in control" expense wise, looking at the budget. Do you share that feeling? EXECUTIVE CHEF (EC) Yes, food-wise no excessive expenses for the Lounge and operations appear to go smoothly. We are going to run some numbers on how much we are spending per guest so we can fine-tune our ordering if we have the forecast. GENERAL MANAGER (GM) I think we have to take into consideration that the IAE week was something special, and with the LMC you'd say usage of the Executive Lounge was very high. Perhaps the two cancel out? AFC No, it doesn't. But if we take February and March, next month we'll have two comparisons and will be better able to analyze expense per guest. FC By the way, I sent all of you that email this morning to make sure all breakfast cost of sales will be booked in the kitchen cost. EC That is the case, and I get the breakfast revenue through the rate code. GM Back to the analysis: hotel occupancy is obviously not so important for the forecast; it's about the occupancy of the rooms that have access to the Executive Lounge: so, an overall occupancy of 80% could mean we could close part of the Lounge if there are no high-tier Loyalty Program member guests. Does everyone have that kind of occupancy info? FC I feel that the next few months, at the end of March perhaps, we'd have to see which ratios we can use and track each month, to optimize purchasing, for how much goes into it. FOM OK, so controllable expenses Rooms is within budget, even a bit under, $18,000, making for a bottom-line Rooms department profit of 66, almost 67 percent GM Which is a great result. FC Definitely. And definitely compared to last year, because it means $95,000 more revenue and almost 595,000 more profit. So a flow-through of almost 100 percent. More questions about Rooms ...no? Then on to the F&B Department Etienne, can you comment on revenue? FBM $172,000 in total revenue; unfortunately we did not make budget; we were 7% under. The shortfall is from all outlets, Banqueting excepted. Especially breakfast did not perform; we're about $6,500 short, or nine percent. The average spend is $16.50 which is a dollar over budget but at a lower occupancy; i assume we had more rooms booked without breakfast, because the Executive Lounge breakfast revenues are part of the $6,500 revenue. FC In the end we had a somewhat lower capture ratio of in-house guests having breakfast. FBM Definitely. There's a downward trend there. The budgeted capture ratio has gone up, for the past year or so, whereas the actual one goes down and down. We need to monitor this. DORM Indeed, if I look at the numbers, we are down 150 nights for rates including breakfast FBM Any idea as to why? DORM No, the supplement for breakfast is $15, so that is an attractive price. Perhaps many people book solely looking at the rate, which is of course lower if breakfast is not included... No, I don't have a logical explanation for it. AFM We are looking into that for the last 6 months, the booking patterns of rates excluding breakfast. FC And how about the Corporate rates this year, without breakfast? There's a few of them, right? AFM Indeed, mainly Large Automotive Company ... but because of the loyalty status of many of those guests, the majority has breakfast included. On top of that we had fewer leisure guests, this month versus last year. FBM OK, well, at least let's make sure we're on the ball on this one. All outlets except for Banqueting and Minibar showed an increase from 2017. Last year February, Banqueting hosted That Big Corporate Party, you remember, in the Ballroom, so it was really impossible to reach that revenue level. Next week we start the minibar project to see if our product range is the right one, and if we couldn't create alternative or additional revenues, like something in the lobby. The shortfall of $12,000 in revenue had to be compensated on the cost side. We tried really hard and low and behold for the very first time full time equivalents $17.59 actual and $17.59 budget so exactly on budget (receives applause). Thank you! EC To continue in that same vein: we have a food cost of... 22.12%. FC How about an applause for that as well?! [Applause). EC. Because of my... FBM Fantastic purchasing skills! EC Well, yes, but that was compensated for by the other part. FBM Thanks for the heads-up, because indeed beverage costs were slightly higher, but bottom-line - simply because food is a bigger slice than beverage- we saved more than $7,500 in cost of sales. We've also been very cautious in Other Expenses; we spent less on just about all of them than budgeted. We came in about $2,500 under budget, and all in all boils down to an actual departmental profit of $33,500 visa-vis a budget. That is still a cool 19.5% versus a budgeted 20% FC There is not too much to say about the Other Revenues. Telecom is a few hundred sollars over budget. Other revenues are a bit under budget but better than last year February; that includes, amongst others, Guest Laundry. We had a very high target of $9,500 for Parking; actual revenue was $8,500, so a bit less, but in absolute terms still very high. FOM And in a short time frame, I guess? The typical IAE guests does not get here by car, same for the LMC guest. FC Yes indeed, about $8,500 on our other guests. Quite happy with that. Rentals and Other Income was quite on budget overall, but that's the effect of two things. Every month we budget a cancellation revenue not knowing if guests will actually cancel and if the rate booked calls for that have to pay us. Last month that did not happen. On the other hand we were allowed to invoice the IAE, or rather the venue of IAE, for security we had to arrange for some of the athletes. We of course also have the expense for that, so that will end up in Rentals and Other Income. The two cancel out: it looks as if we are exactly on budget, and we are, but the way in which we achieved that was a bit different from what you'd expect. So you also see a higher cost of sales in Rentals and Other Income, because those revenues were generated a bit differently. Because the invoice we sent to the IAE venue, for security, is actually the invoice we received ourselves, for security. Let's move on to the overhead departments. First A&G. Pretty much all overhead departments have Payroll reasonably in line with budget. A&G was $1,000 over budget. Total expenses here $8,500 over budget and $8,500 more than last year. This is mostly because of the invoice we received for extra security services during the IAE which as we just discussed was booked in A&G; this was $4,500. Then we also spend $2,000 more on credit card commission, never mind our slightly lower revenue, but that's because our share of American Express was very high: 30.2% of total credit card payments which is more than we're used to. On top of that, 73.6% of all payments were credit cards, which is also higher than we're used to. GM That is a very high percentage. FC Yes. You'd expect, with these big events and conferences, the percentage credit card payments to be lower; the IAE is of course invoiced but anyway, it was 73.6%. On to Sales and Marketing. SALES AND MARKETING MANAGER (SM) in Sales and Marketing expenses we were a bit over budget, which can be explained by the transfer of some hours from F&B for the IAE, but other expenses are below budget. Large items, as you know, include Promotion & Entertainment in which all IAE expenses were booked. We saved 2K on a total budget of $50,000, so that helps. Next to that we had a photo shoot which we over-budgeted and managed to spend $750 less. E-commerce was somewhat higher, because of an annual invoice which was budgeted in its entirety for January, but we decided to book as an expense each month, pro-rated. But all in all expense-wise a good month for us. FC Thank you. Next up is Property Operations. FC Fine, thanks. Total GOP for the hotel is thus $218,000 versus a budget of 5221,000. In other words, as I said before, we only lost $3,000 of GOP with a decrease in revenue of 22,000, which means all of the items we just discussed accounted for a good flow-through on negative revenue: 85% whereas the target for negative revenue is 35%, so we can say we were in control. Also compared to last year we're doing fine: $89,000 more revenue, and $64,000 of that flows through to GOP. So a 72% flow-through, where the target is normally 65%. But, of course this depends on the sales mix. If your additional revenue is 100% from Rooms, and 100% the effect of higher ADR, then of course flow-through will go through the roof, if it is purely F&B then we'd expect much lower flow-through. And 72% is a very good flow-through in comparison to a similar month the year before. Let's conclude with a look ahead to the next two months. Would you care to enlighten us about the March and April forecasts, Michael? DORM. Sure, first the March forecast. I slightly lowered the Rooms revenues for the Group segment. Group Leisure, that is tours, they're not going well, not just with us, but city-wide. I decreased it by 100 nights. Transient on the other hand is performing, so the total forecast is 880 nights, including airline) Crew, and Transient Rooms is at 3,700, so we'll make budget. For March we are forecasting an ADR of $133.38 budget is $131.35. April will be a busy month, we are going to reach budget for sure, and mainly because of groups, conferences and another International Athletic Event. The latter weekend is going to be very strong, ADR will hit $223 and the shoulder dates are also selling well. Two hotels have been completely bought out for four days, so we benefit from that quite a bit. And the last week is spring break and sees a large conference in the International Conference Centre which is known to get us big group bookings FC A hundred grand over budget? DORM Well, let's see where we stand right now...I am comparing current pickup and that of last year... ADR for the month is already $145 budget was $138. FC A great month to look forward to GM A good month to do some renovations! (people laughing) FC Let's agree on the following. By the end of March, when we'll have a better idea of the actual revenue for April, then I'd like to look at which departments expect expenses related to our renovation. Perhaps would agree to send me, by then, their take on what impact they expect on for example housekeeping, that's the first one that crosses my mind. But also, on extra payroll for moving furniture about, and relocating breakfast room. GM It is indeed a good suggestion to communicate the increase in revenue to the owner, but to make sure their expectations in terms of GOP stay realistic. FC You mean there won't be a 100% flow-through of the additional revenues. Good. Does anyone have any questions about the results? No? Then we close the meeting Questions 1. What does it indicate that the hotel was $22,000 under revenue budget but only $3,000 under GOP budget? 2. What are the general themes is the DORM's summary paragraph? 3. Why do you think the FOM thinks they are "in control expense wise? 4. Why would the Chef want to calculate spending per guest 5. Why would the FC want to review revenues and expenses in a month that they expect to exceed budget in relation to renovation expenses? 6. What were your overall impressions of the meeting. Why do you think hotels take the time each month to hold these meetings? Do you think one department or manager would benefit more or less from attending these? Financial Controller (FC) OK, the results for February. For the first time in 14 months we did not make budget. That said, total revenue is very good at $876.000, 11% more than last year. A very nice increase, even if under budget. So, I see it as an indication our budget is just ambitious, and perhaps we can't expect to make it each and every month. Year-to-Date (YTD) we are still over budget, so January included we are 1% over. A quick look down the P&L, at GOP; because what we have been very successful at this month is to keep expenses under control. A few expenses were lower than expected. Of course, it's always a special month, February, what with all the conferences in town and the International Athletic Event (IAE). The associated one-off expenses have of course been budgeted, so the moment they turn out to be less than expected, we keep GOP under control. And we did, the bottom line is that while being $22,000 under our revenue budget, we are just $3,000 under in terms of GOP. So, in January we were nicely over budget, GOP-wise, and unfortunately February erased a bit from that. So that's a quick impression of the final result of February Revenue Manager (DORM) In Rooms we did not make the budgeted revenue. Keep in mind February was the month with the largest budgeted increase versus last year. We did manage to get 105K more than last year, so not quite budget but still an OK increase. The main reason for not making budget is the lower than expected pick-up of the Large Medical Conference (LMC) group, we expected more from that. We received many high room rate cancellations. If you look at our segmentation, you see quite a few room nights less than budget, 325, and also 250 less than last year. Overall in Transient individual business we are 8K over budget; most of this is from the average daily] rate (ADR), S14 over budget. Good segments were 'Corporate', an increase here of $3, and 'Other Discount', which includes our long stays, so our guests who stay more than five nights. Here we were $50 over budget, ADR-wise, so that's positive and $62 more than last year, with an extra 100 nights. In Group Corporate we were on budget in terms of nights, but $22 over our ADR budget. In Group Leisure we were 141 nights under budget, mostly because the tour business did not deliver in February. We are also 58 under our ADR budget there. Overall, we are 40 nights short of budget in Groups, but $2 over budget in rate. A bit surprising is that we are growing in occupancy but not in guest numbers, compared to last year. We did an analysis of the IAE and we sold more doubles then. So, all other weeks and periods we received fewer guests per room FC I noticed an average number of guests per room of 1.25 and I seem to remember it was 1.37 last year, indeed the average for the full year being 1.37, so yes, that's lower DORM During the IAE it was much higher, we had a lot of double occupancy, and 100 guests more. FC And how many nights, compared to last year? DORM 35 nights more. FC And the totals for the LMC, how does that stack up to last year? DORM I still have to prepare that overview. In the end, the organization block remained flat, it's just that we didn't get as many participants in. In the last two weeks before the conference, the other hotels in town didn't keep their rates high, so as I just mentioned, we got a lot of cancellations of people who went to other hotels FC OK. Let's go to Payroll in Rooms. ROOMS DIVISION MANAGER (FOM) I have lower expenses in salaried payroll, but we had to employ more hourly workers because of sick leave and team members taking time off in February. That accounts for the budget variance as we had to schedule people differently. In the Executive Lounge, Etienne, don't know if you would like to add anything but I'd say we are quite on budget there..... Anything worth mentioning? FOOD AND BEVERAGE MANAGER (FBM) I actually don't get these numbers, but as far as I know results should be exactly on budget. FOM They are. But good to know you don't get these figures. Perhaps the results of the (just-opened) Executive Lounge can also be shared with Etienne as he manages these hours even though they sit within my Rooms Division? FC Payroll Housekeeping, Elisabetta, would you like to comment? HOUSEKEEPING MANAGER (HKM) Yes, we saved $1,000 overall; we had some associates on sick leave but that was more than balanced out by salaried people taking time off than budgeted; plus I think we scheduled really well. FC And, of course, occupancy was a bit lower. FOM And a nice average time per room. FOM The hours for extra security during the IAE, are they also included? ASSISTANT FINANCIAL CONTROLLER (AFC) Partly. The hours Danny worked in last week, yes, they are in. The hours during the IAE? No, those are in Administrative and General. FOM Good, so total Payroll Rooms in line with budget even though we had lower occupancy. In the controllables, we see a higher laundry which is the result of our linen replacement in February. We also expect a credit invoice related to this which will make us on budget again, Year-to-Date. Printing and stationary we ordered in February for our new Executive Lounge. Guest Amenities is under budget because we already took an accrual in February of $2,000. ravel agents commission is lower, which is interesting as this usually only seems to go up ... also, uniforms this month, we took an accrual in January so no expenses in February. The Executive Lounge gives me the feeling we are "in control" expense wise, looking at the budget. Do you share that feeling? EXECUTIVE CHEF (EC) Yes, food-wise no excessive expenses for the Lounge and operations appear to go smoothly. We are going to run some numbers on how much we are spending per guest so we can fine-tune our ordering if we have the forecast. GENERAL MANAGER (GM) I think we have to take into consideration that the IAE week was something special, and with the LMC you'd say usage of the Executive Lounge was very high. Perhaps the two cancel out? AFC No, it doesn't. But if we take February and March, next month we'll have two comparisons and will be better able to analyze expense per guest. FC By the way, I sent all of you that email this morning to make sure all breakfast cost of sales will be booked in the kitchen cost. EC That is the case, and I get the breakfast revenue through the rate code. GM Back to the analysis: hotel occupancy is obviously not so important for the forecast; it's about the occupancy of the rooms that have access to the Executive Lounge: so, an overall occupancy of 80% could mean we could close part of the Lounge if there are no high-tier Loyalty Program member guests. Does everyone have that kind of occupancy info? FC I feel that the next few months, at the end of March perhaps, we'd have to see which ratios we can use and track each month, to optimize purchasing, for how much goes into it. FOM OK, so controllable expenses Rooms is within budget, even a bit under, $18,000, making for a bottom-line Rooms department profit of 66, almost 67 percent GM Which is a great result. FC Definitely. And definitely compared to last year, because it means $95,000 more revenue and almost 595,000 more profit. So a flow-through of almost 100 percent. More questions about Rooms ...no? Then on to the F&B Department Etienne, can you comment on revenue? FBM $172,000 in total revenue; unfortunately we did not make budget; we were 7% under. The shortfall is from all outlets, Banqueting excepted. Especially breakfast did not perform; we're about $6,500 short, or nine percent. The average spend is $16.50 which is a dollar over budget but at a lower occupancy; i assume we had more rooms booked without breakfast, because the Executive Lounge breakfast revenues are part of the $6,500 revenue. FC In the end we had a somewhat lower capture ratio of in-house guests having breakfast. FBM Definitely. There's a downward trend there. The budgeted capture ratio has gone up, for the past year or so, whereas the actual one goes down and down. We need to monitor this. DORM Indeed, if I look at the numbers, we are down 150 nights for rates including breakfast FBM Any idea as to why? DORM No, the supplement for breakfast is $15, so that is an attractive price. Perhaps many people book solely looking at the rate, which is of course lower if breakfast is not included... No, I don't have a logical explanation for it. AFM We are looking into that for the last 6 months, the booking patterns of rates excluding breakfast. FC And how about the Corporate rates this year, without breakfast? There's a few of them, right? AFM Indeed, mainly Large Automotive Company ... but because of the loyalty status of many of those guests, the majority has breakfast included. On top of that we had fewer leisure guests, this month versus last year. FBM OK, well, at least let's make sure we're on the ball on this one. All outlets except for Banqueting and Minibar showed an increase from 2017. Last year February, Banqueting hosted That Big Corporate Party, you remember, in the Ballroom, so it was really impossible to reach that revenue level. Next week we start the minibar project to see if our product range is the right one, and if we couldn't create alternative or additional revenues, like something in the lobby. The shortfall of $12,000 in revenue had to be compensated on the cost side. We tried really hard and low and behold for the very first time full time equivalents $17.59 actual and $17.59 budget so exactly on budget (receives applause). Thank you! EC To continue in that same vein: we have a food cost of... 22.12%. FC How about an applause for that as well?! [Applause). EC. Because of my... FBM Fantastic purchasing skills! EC Well, yes, but that was compensated for by the other part. FBM Thanks for the heads-up, because indeed beverage costs were slightly higher, but bottom-line - simply because food is a bigger slice than beverage- we saved more than $7,500 in cost of sales. We've also been very cautious in Other Expenses; we spent less on just about all of them than budgeted. We came in about $2,500 under budget, and all in all boils down to an actual departmental profit of $33,500 visa-vis a budget. That is still a cool 19.5% versus a budgeted 20% FC There is not too much to say about the Other Revenues. Telecom is a few hundred sollars over budget. Other revenues are a bit under budget but better than last year February; that includes, amongst others, Guest Laundry. We had a very high target of $9,500 for Parking; actual revenue was $8,500, so a bit less, but in absolute terms still very high. FOM And in a short time frame, I guess? The typical IAE guests does not get here by car, same for the LMC guest. FC Yes indeed, about $8,500 on our other guests. Quite happy with that. Rentals and Other Income was quite on budget overall, but that's the effect of two things. Every month we budget a cancellation revenue not knowing if guests will actually cancel and if the rate booked calls for that have to pay us. Last month that did not happen. On the other hand we were allowed to invoice the IAE, or rather the venue of IAE, for security we had to arrange for some of the athletes. We of course also have the expense for that, so that will end up in Rentals and Other Income. The two cancel out: it looks as if we are exactly on budget, and we are, but the way in which we achieved that was a bit different from what you'd expect. So you also see a higher cost of sales in Rentals and Other Income, because those revenues were generated a bit differently. Because the invoice we sent to the IAE venue, for security, is actually the invoice we received ourselves, for security. Let's move on to the overhead departments. First A&G. Pretty much all overhead departments have Payroll reasonably in line with budget. A&G was $1,000 over budget. Total expenses here $8,500 over budget and $8,500 more than last year. This is mostly because of the invoice we received for extra security services during the IAE which as we just discussed was booked in A&G; this was $4,500. Then we also spend $2,000 more on credit card commission, never mind our slightly lower revenue, but that's because our share of American Express was very high: 30.2% of total credit card payments which is more than we're used to. On top of that, 73.6% of all payments were credit cards, which is also higher than we're used to. GM That is a very high percentage. FC Yes. You'd expect, with these big events and conferences, the percentage credit card payments to be lower; the IAE is of course invoiced but anyway, it was 73.6%. On to Sales and Marketing. SALES AND MARKETING MANAGER (SM) in Sales and Marketing expenses we were a bit over budget, which can be explained by the transfer of some hours from F&B for the IAE, but other expenses are below budget. Large items, as you know, include Promotion & Entertainment in which all IAE expenses were booked. We saved 2K on a total budget of $50,000, so that helps. Next to that we had a photo shoot which we over-budgeted and managed to spend $750 less. E-commerce was somewhat higher, because of an annual invoice which was budgeted in its entirety for January, but we decided to book as an expense each month, pro-rated. But all in all expense-wise a good month for us. FC Thank you. Next up is Property Operations. FC Fine, thanks. Total GOP for the hotel is thus $218,000 versus a budget of 5221,000. In other words, as I said before, we only lost $3,000 of GOP with a decrease in revenue of 22,000, which means all of the items we just discussed accounted for a good flow-through on negative revenue: 85% whereas the target for negative revenue is 35%, so we can say we were in control. Also compared to last year we're doing fine: $89,000 more revenue, and $64,000 of that flows through to GOP. So a 72% flow-through, where the target is normally 65%. But, of course this depends on the sales mix. If your additional revenue is 100% from Rooms, and 100% the effect of higher ADR, then of course flow-through will go through the roof, if it is purely F&B then we'd expect much lower flow-through. And 72% is a very good flow-through in comparison to a similar month the year before. Let's conclude with a look ahead to the next two months. Would you care to enlighten us about the March and April forecasts, Michael? DORM. Sure, first the March forecast. I slightly lowered the Rooms revenues for the Group segment. Group Leisure, that is tours, they're not going well, not just with us, but city-wide. I decreased it by 100 nights. Transient on the other hand is performing, so the total forecast is 880 nights, including airline) Crew, and Transient Rooms is at 3,700, so we'll make budget. For March we are forecasting an ADR of $133.38 budget is $131.35. April will be a busy month, we are going to reach budget for sure, and mainly because of groups, conferences and another International Athletic Event. The latter weekend is going to be very strong, ADR will hit $223 and the shoulder dates are also selling well. Two hotels have been completely bought out for four days, so we benefit from that quite a bit. And the last week is spring break and sees a large conference in the International Conference Centre which is known to get us big group bookings FC A hundred grand over budget? DORM Well, let's see where we stand right now...I am comparing current pickup and that of last year... ADR for the month is already $145 budget was $138. FC A great month to look forward to GM A good month to do some renovations! (people laughing) FC Let's agree on the following. By the end of March, when we'll have a better idea of the actual revenue for April, then I'd like to look at which departments expect expenses related to our renovation. Perhaps would agree to send me, by then, their take on what impact they expect on for example housekeeping, that's the first one that crosses my mind. But also, on extra payroll for moving furniture about, and relocating breakfast room. GM It is indeed a good suggestion to communicate the increase in revenue to the owner, but to make sure their expectations in terms of GOP stay realistic. FC You mean there won't be a 100% flow-through of the additional revenues. Good. Does anyone have any questions about the results? No? Then we close the meeting Questions 1. What does it indicate that the hotel was $22,000 under revenue budget but only $3,000 under GOP budget? 2. What are the general themes is the DORM's summary paragraph? 3. Why do you think the FOM thinks they are "in control expense wise? 4. Why would the Chef want to calculate spending per guest 5. Why would the FC want to review revenues and expenses in a month that they expect to exceed budget in relation to renovation expenses? 6. What were your overall impressions of the meeting. Why do you think hotels take the time each month to hold these meetings? Do you think one department or manager would benefit more or less from attending these