Sales Forecast

Assumption: The forecasts are based on the third year of operation, which is considered to be a normal financial year.

All prices are in Sfr/CHF per room, not per person.

Rooms Revenue:

Separate by type of rooms: Start with standard double room, later use other type of rooms.

Number of rooms x Average Room rate x occupancy percentage x 365 days

The average room rate has to be found in the following way:

Take the rack rate excluding breakfast allocation of the specific type of room x Average Pax

• Resort tax (Kurtaxe / Tax de sjour) Sfr 4.- per adult

• Divide by 1 plus the VAT-Rate for accommodation 3.6% or divide by 1.036

• Deduct commissions and discounts (consider your distribution channels). Typically four star hotels in Switzerland account for 10-15% of Net Sales as commissions and discounts.

Revenue from charges for extra-beds and perhaps baby cot is to be added separately in the end.

Repeat those steps for all type of rooms. The more rooms you have of a specific type of room and the more standard it is, the higher occupancy you can expect.

Breakfast allocation is NOT what you charge a customer for a breakfast. It is considerably lower. It is the amount of money that is allocated to Food Sales per person staying in the hotel. Use 40%-50% of your breakfast selling price for breakfast allocation per person, depending on your level of service (star rating) and the variety of breakfast items offered.

This breakfast allocation has to be considered for the Food Sales Forecast.

FOOD SALES

Breakfast Assuming that your room prices include b-fast, your breakfast allocation needs to be divided by 1 plus VAT RATE (7.7% for prepared food in Switzerland).

If Breakfast is not included: # pax staying in hotel annually x User rate (approx. 80%) x Average Breakfast charge Then divide this by 1 + VAT gives you the Net Breakfast Revenue

Consider your external breakfast guests and brunch, if you are offering it on weekends.

Lunch and Dinner forecasts need to be done separately for each restaurant if you have more than one.

Lunch: Number of seats in the restaurant x seat turnover x average food spend x number of days open

Average food spend: 12-30% of average starter price plus average main course price plus 25-50% of your average dessert price EXCLUDING Coffee/Tea Revenue. Consider set lunches if you offer them.

Dinner: Use the same formula than for lunch, but consider that people eat more than at lunch time.

Brunch: If you offer brunch (Sundays or weekends) account for it separately. Here you might have outside guests joining in.

You might serve food in the bar or lounge or elsewhere. Account for it separately.

Beverage Revenue:

Lunch-Food Revenue x 25% Dinner-Food Revenue x 25-42%, depending on: - level of customers - class of restaurant - where your customers are from

Bar: Amount of customers per operating hour x hours open per day x 365 days x amount of money spent per drinking hour (6 to 15 Sfr)

Coffee/Tea in lounge and at lunch and dinner in restaurants goes towards beverage revenue, during breakfast and brunch it is part of the food revenue.

Rooms Service to be considered separately. Refer to pricing to indicate your room service breakfast pricing policy. Estimate room service meals per day/night x average spend x 365 days. Total room service revenue is typically 3-5% of your restaurant food revenue. Account for food and beverage revenue separately (due to different costs associated).

Your total beverage revenue is typically 25-30% of your food revenue for this type of operation.

Banquet/Functions:

Separate your forecast into functions without food (meetings) and functions with food (banquets).

Functions without food: Consider the charge for the function room. Usually water and coffee is charged separately and brings additional beverage revenue.

Functions with food normally do not carry a room charge.

Separate into small / medium / and large functions.

Then estimate how many small, medium and large functions you are holding per month. Then multiply with the average food spend and times 12months to receive the annual revenue.

Use 25% of food sales as beverage sales for banquets.

Account for mineral and coffee sales separately (for functions where no food is served).

Consider your cost of sales for function food and beverage sales.

Other / Miscellaneous Sales: (remember: Our industry more and more depends on discretionary income, see chapter 1 of your finance book) - Garage / Parking - Wellness / Pool - Shop Space Rent - Sundry Sales - more, depending on your operation.

Expenses:

Cost of Sales: Food 30%, Beverage 20% based on the respective NET Sales (excl. VAT) Minibar cost of sales separately (17%)

Add 15% of labour related charges (insurances, pension fund, training costs, uniforms and similar) to your total salaries

Total Labour Cost including all related charges: 32 to 36% of Total NET Sales

Other operating expenses: 20-24% of Total NET Sales

Fixed charges: To be decided to achieve an 12%-Net Profit Margin (before tax)

Income Tax: Use 18% on Income before tax.

Last step in finance: Find the maximum amount of capital to be invested

Currently, investors are expecting a 6.0 % Return on total investment (ROI). We assume that this is a weighted cost of capital. Use your net profit after tax and divide it by the ROI to establish your maximum capital (Equity and Debt) to be invested into the project.

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Hi I wanna know how to find the breakfast allocation (what should I multiple/plus/...)

Fo average room rate, is it correct that Rack rate * 4% / 1.036 - 10%*Rack rate * 4% / 1.036 ?? (No net sale inform is provided)

Further guideline how to calculate others are appreciated !!!