What is the purpose of a hotel budget?
A hotel budget helps in planning and controlling financial resources to meet business objectives.
Which document summarizes a hotel’s revenues and expenses?
An income statement shows profits, losses, and the financial performance over a set period.
Why is cash flow management important?
Managing cash flow ensures the hotel can meet its short-term financial obligations.
What does ROI stand for in financial management?
ROI, or Return on Investment, measures the profitability of an investment.
What is capital expenditure?
Capital expenditure refers to funds used by a hotel to acquire or upgrade physical assets like property or equipment.
Which financial metric indicates hotel profitability?
Gross Operating Profit (GOP) measures a hotel’s efficiency in generating profit from operations.
Loading Questions...
What is a forecast in hospitality finance?
A financial forecast estimates future revenue and expenses to assist in planning.
Why is cost control necessary in hotel management?
Cost control helps increase profitability by reducing unnecessary expenses.
What is a fixed cost in hospitality?
Fixed costs do not change with hotel occupancy and include rent, insurance, and salaries.