The Continental Hotel Budget Planner
The Continental hotel is a 15-room hotel situated in London. The hotel charges 250 per night per room. The hotel also has excellent quality restaurant.
From the following information that relates to the Hotel, you are required to prepare a month-by-month cash budget forecast for January 2022 to December 2023.
On the 1st January 2022, the business bank account was in credit by 6000. If the business is overdrawn on the last day of any month, the bank charges interest at the rate of 5.8% per month based upon the month end balance. The interest is withdrawn on the 10th day of the following month. The account is paid interest monthly on positive balances on the 15th day of each month at an interest rate of 2% based upon the balance at the end of the previous month.
On the basis of past experience and taking account of predicted future developments in the market, the hotels management believes that the average nightly demand for the coming year will be:
| Month Predicted Revenue |
| January 75,000 February 46,000 March 75,000 April 30,000 May 32,000 June 39,000 July 46,500 August 46,900 September 54,000 October 39,000 November 40,900 December 40,800 |
All room payments are received in cash/debit card, as the hotel does not currently offer business credit facilities to guests.
The hotel has ten employees and the total monthly wage bill is 3,000. The hotel pays its utility bills monthly at an estimated cost of 800. Business rates are estimated at 400 per month, although no payments are made in September or May.
The Hotel subscribes to ten different magazines for use by the guests at a quarterly cost of 300. The first payment being due in February 2022. The cost of complimentary in-room beverages is estimated to cost the hotel 250 per month and is paid every two months starting from April. Daily delivery of The Guardian, The Times, The Financial Times and The Telegraph newspapers are paid for in the month following delivery. The average monthly cost to the Hotel is 150 per month.
The hotel pays annual building insurance at a cost of 2500, which is due in September. The hotel purchases a custom made wardrobe at a cost of 7,000, the payments are due in four installments. The first installment is due on May 30th.
The hotel has three vehicles on lease from Days, at a monthly finance cost of 275. The estimated cost of petrol for these vehicles is around 500 per month. Also, third party insurance is paid for the vehicles at a cost of 4000 per year, which is due in December 2022. The hotel also has the vehicles valeted on a weekly basis at an estimate cost of 35 per week.
The hotel does not currently have a gym or swimming pool, however guests are given a pass to use the these facilities at Virgin Active which is situated opposite the hotel. The use of the facilities costs the hotel an estimate 1500 per month and is paid on the 15th of each month.
All rooms at the hotel have Sky Sports and Sky Movie available, which costs the Hotel an estimated 250 per month, which is due for payment on the 20th of each month. Also, the hotel has to pay a license to the Premier League to show live televised matches in public areas. The total annual cost of the license is 3000 and is due in April.
Each room has a mini bar that includes a plethora of alcoholic beverages, soft drinks and snacks. The purchase of these items costs the hotel an average estimated cost of 3000 per month which is payable the month following receipt. Guests are charged for each item used. The average estimated income from the sale of these items is 6800 per month, which is received at the time of guest check out. Guests rarely stay at the hotel for more than a few nights at a time.
Requirement
Please use Excel template provided by your lecturer.
Prepare the budget planner (cash flow forecast) for the hotel for the forthcoming year. This should show the budgeted income and expenditure clearly categorized. It should also clearly show the net monthly income/expenditure and the opening and closing balance on the hotels bank balance.
Work to the nearest , using the template provided. Assume 4 weeks in a calendar month.
The Continental Hotel Budget Planner The Continental hotel is a 15-room hotel situated in London. The hotel charges 250 per night per room. The hotel also has excellent quality restaurant. From the following information that relates to the Hotel, you are required to prepare a month-by- month cash budget forecast for January 2022 to December 2023. On the 1st January 2022, the business bank account was in credit by 6000. If the business is overdrawn on the last day of any month, the bank charges interest at the rate of 5.8% per month based upon the month end balance. The interest is withdrawn on the 10th day of the following month. The account is paid interest monthly on positive balances on the 15th day of each month at an interest rate of 2% based upon the balance at the end of the previous month. On the basis of past experience and taking account of predicted future developments in the market, the hotel's management believes that the average nightly demand for the coming year will be: Predicted Month Revenue January February March April May June July August September October November December 75,000 46,000 75,000 30,000 32,000 39,000 46,500 46,900 54,000 39,000 40,900 40,800 All room payments are received in cash/debit card, as the hotel does not currently offer business credit facilities to guests. The hotel has ten employees and the total monthly wage bill is 3,000. The hotel pays its utility bills monthly at an estimated cost of 800. Business rates are estimated at 400 per month, although no payments are made in September or May. 2 The Hotel subscribes to ten different magazines for use by the guests at a quarterly cost of 300. The first payment being due in February 2022. The cost of complimentary in-room beverages is estimated to cost the hotel 250 per month and is paid every two months starting from April. Daily delivery of The Guardian, The Times, The Financial Times and The Telegraph newspapers are paid for in the month following delivery. The average monthly cost to the Hotel is 150 per month. The hotel pays annual building insurance at a cost of 2500, which is due in September. The hotel purchases a custom made wardrobe at a cost of 7,000, the payments are due in four installments. The first installment is due on May 30th The hotel has three vehicles on lease from Days, at a monthly finance cost of 275. The estimated cost of petrol for these vehicles is around 500 per month. Also, third party insurance is paid for the vehicles at a cost of 4000 per year, which is due in December 2022. The hotel also has the vehicles valeted on a weekly basis at an estimate cost of 35 per week. The hotel does not currently have a gym or swimming pool, however guests are given a pass to use the these facilities at Virgin Active which is situated opposite the hotel. The use of the facilities costs the hotel an estimate 1500 per month and is paid on the 15th of each month. All rooms at the hotel have Sky Sports and Sky Movie available, which costs the Hotel an estimated 250 per month, which is due for payment on the 20th of each month. Also, the hotel has to pay a license to the Premier League to show live televised matches in public areas. The total annual cost of the license is 3000 and is due in April. Each room has a mini bar that includes a plethora of alcoholic beverages, soft drinks and snacks. The purchase of these items costs the hotel an average estimated cost of 3000 per month which is payable the month following receipt. Guests are charged for each item used. The average estimated income from the sale of these items is 6800 per month, which is received at the time of guest check out. Guests rarely stay at the hotel for more than a few nights at a time. 3 Requirement Please use Excel template provided by your lecturer. Prepare the budget planner (cash flow forecast) for the hotel for the forthcoming year. This should show the budgeted income and expenditure clearly categorized. It should also clearly show the net monthly income/expenditure and the opening and closing balance on the hotels bank balance. Work to the nearest , using the template provided. Assume 4 weeks in a calendar month. The Continental Hotel Budget Planner The Continental hotel is a 15-room hotel situated in London. The hotel charges 250 per night per room. The hotel also has excellent quality restaurant. From the following information that relates to the Hotel, you are required to prepare a month-by- month cash budget forecast for January 2022 to December 2023. On the 1st January 2022, the business bank account was in credit by 6000. If the business is overdrawn on the last day of any month, the bank charges interest at the rate of 5.8% per month based upon the month end balance. The interest is withdrawn on the 10th day of the following month. The account is paid interest monthly on positive balances on the 15th day of each month at an interest rate of 2% based upon the balance at the end of the previous month. On the basis of past experience and taking account of predicted future developments in the market, the hotel's management believes that the average nightly demand for the coming year will be: Predicted Month Revenue January February March April May June July August September October November December 75,000 46,000 75,000 30,000 32,000 39,000 46,500 46,900 54,000 39,000 40,900 40,800 All room payments are received in cash/debit card, as the hotel does not currently offer business credit facilities to guests. The hotel has ten employees and the total monthly wage bill is 3,000. The hotel pays its utility bills monthly at an estimated cost of 800. Business rates are estimated at 400 per month, although no payments are made in September or May. 2 The Hotel subscribes to ten different magazines for use by the guests at a quarterly cost of 300. The first payment being due in February 2022. The cost of complimentary in-room beverages is estimated to cost the hotel 250 per month and is paid every two months starting from April. Daily delivery of The Guardian, The Times, The Financial Times and The Telegraph newspapers are paid for in the month following delivery. The average monthly cost to the Hotel is 150 per month. The hotel pays annual building insurance at a cost of 2500, which is due in September. The hotel purchases a custom made wardrobe at a cost of 7,000, the payments are due in four installments. The first installment is due on May 30th The hotel has three vehicles on lease from Days, at a monthly finance cost of 275. The estimated cost of petrol for these vehicles is around 500 per month. Also, third party insurance is paid for the vehicles at a cost of 4000 per year, which is due in December 2022. The hotel also has the vehicles valeted on a weekly basis at an estimate cost of 35 per week. The hotel does not currently have a gym or swimming pool, however guests are given a pass to use the these facilities at Virgin Active which is situated opposite the hotel. The use of the facilities costs the hotel an estimate 1500 per month and is paid on the 15th of each month. All rooms at the hotel have Sky Sports and Sky Movie available, which costs the Hotel an estimated 250 per month, which is due for payment on the 20th of each month. Also, the hotel has to pay a license to the Premier League to show live televised matches in public areas. The total annual cost of the license is 3000 and is due in April. Each room has a mini bar that includes a plethora of alcoholic beverages, soft drinks and snacks. The purchase of these items costs the hotel an average estimated cost of 3000 per month which is payable the month following receipt. Guests are charged for each item used. The average estimated income from the sale of these items is 6800 per month, which is received at the time of guest check out. Guests rarely stay at the hotel for more than a few nights at a time. 3 Requirement Please use Excel template provided by your lecturer. Prepare the budget planner (cash flow forecast) for the hotel for the forthcoming year. This should show the budgeted income and expenditure clearly categorized. It should also clearly show the net monthly income/expenditure and the opening and closing balance on the hotels bank balance. Work to the nearest , using the template provided. Assume 4 weeks in a calendar month
