Traditional Culture Encyclopedia - Hotel franchise - Calculation of gross profit and net profit
Calculation of gross profit and net profit
Exploring the "black hole" of hotel profits
80% hotels are unprofitable. What is the reason? What are the unprofitable places in these hotels? The unprofitable field is the "black hole" of the hotel industry. The natural black hole inhaled by light no longer explores the root of the "black hole" of hotel profits from eight aspects.
First, from the hotel investment cost to see the "black hole" of hotel profits
As a kind of property, hotel investment needs a lot of money, including many investment costs. According to the content, the investment cost can be divided into four categories:
1. Construction cost Construction cost is generally calculated at the price per square meter. This cost is related to the level of real estate prices in different regions and cities.
2. Non-construction costs Non-construction costs include furniture, fixtures, equipment, outdoor entertainment facilities, parking lots, landscaping, pipeline laying, pavement construction, etc. This kind of expenses are related to the hotel investment level.
3. Soft costs Soft costs include legal consulting fees, design fees, financing fees, insurance fees, business preparation fees and start-up fees during the whole construction and preparation period of hotel projects. The cost is related to the construction period of the hotel and whether the person in charge of the preparation is professional or not.
4. Land cost Land cost is related to the city where the hotel is built and the specific location chosen.
The sum of the above four types of costs constitutes the total investment cost of the hotel. Proper control of the total investment cost to match the scale and grade of the hotel is the first prerequisite for the hotel to achieve the goal of return on investment.
What kind of investment cost can guarantee the hotel to realize the profit of future operation? According to the general standards of international hotel industry, the investment cost of five-star hotels is between 654.38+05,000-200,000 USD, calculated by room. The investment cost of four-star hotels is between $6,543,800 and $6,543,800. The investment cost of three-star hotels is between 50 thousand and 80 thousand dollars; The investment cost of budget hotels is between $65,438+5,000-40,000. According to incomplete statistics, the investment cost of different star hotels built in China in recent years has greatly exceeded the international industry standards. In developed coastal cities, the investment cost of five-star hotels is between 200,000 and 300,000 dollars per room. The investment cost of a four-star hotel ranges from $6.5438+$8,000 to $250,000. The investment cost of three-star hotels is between $70,000 and $654.38 million. The investment cost of budget hotels is between 25,000 and 50,000 dollars. According to the hotel's grade, the domestic average investment cost is 30% to 40% higher than the international standard. This high cost has created a huge "black hole" for the normal operation of the hotel in the future.
According to this average investment cost, the international hotel industry adopts the "one thousandth method"
According to the principle of valuation, the price of a five-star hotel should be sold to an average of more than one dollar in 200 yuan, so that the hotel can get a normal return on investment; By analogy, the average price of four-star hotels should be sold above 180 yuan; The price of three-star hotels should be sold above the average 70 yuan dollar; The average price of budget hotels should be above the average dollar in 25 yuan. Only such an average price range ratio can guarantee the normal return on investment of hotel management. However, the current situation of the industry is that the average price of five-star hotels can only be sold at half the level; The average price of four-star hotels can only be sold to one third of the level; The average price of three-star hotels also sells at half the level; Only the average price of budget hotels can be sold at 20%. According to the actual average selling price, it is clearly predicted that the target rate of return of the hotel will be reduced by more than half compared with the budget before construction. Among all kinds of star-rated hotels, several budget hotels are in the best condition, and the payback period of investment is closest to the original budget level. This is also one of the reasons for the current investment boom in budget hotels. Among all kinds of hotels, four-star and three-star hotels do not bid, and most of them wander in unprofitable areas.
The above data show that the total cost of hotel investment is out of control, and the total cost is misplaced with the scale and grade of the hotel, which is the reason why the hotel falls into an unprofitable "black hole" in its future operation.
Second, look at the "black hole" of hotel profits from the preparation cycle.
Building a hotel is a huge and complicated project, and the preparation period will be longer than other projects. The normal preparation period is generally about 3 to 4 years. It can be divided into four time periods:
1. The project preparation period is generally about half a year, from project establishment, approval, application for licenses required for various projects to the arrival of preparatory personnel.
2. The civil engineering and design cycle is generally about half a year, including civil engineering bidding, signing of civil engineering construction contracts, bidding, selection of design units and determination of final design scheme. During this period, the cooperation of construction unit, civil engineering unit and design unit is the guarantee of this cycle time.
3. The period of structural construction and ordering equipment and facilities is generally about one year. While the contractor is building the hotel building structure, the organizer begins to select, compare and order equipment and facilities.
4. The period of equipment and facilities installation, interior decoration design, construction and business preparation is generally about one and a half years. After the hotel building structure is completed, with the progress of interior decoration, the ordered equipment and facilities will be gradually installed. The interior decoration design needs bidding. After the design scheme is finalized, the interior decoration team and the installation team basically enter the site at the same time. Business preparation includes the recruitment of personnel, the procurement of furniture and various supplies, the training of personnel, the formulation of market plans and so on.
Whether the whole preparation period can be completed as planned in these four intersecting and closely related stages is caused by many factors. These factors generally include: the professional management level of the staff, the financial guarantee of the project, the qualification and management level of the design unit and the construction unit, and the qualification and strength of the supplier. In the whole preparation process, if affected by any one of these factors, the preparation period of the whole hotel will be extended, which can be 1 to 3 years, and the longest can be 5 to 6 years. The main reason is that funds cannot keep up.
Many hotel projects, after the structure is capped, due to the lack of follow-up funds, reinforced concrete buildings will stand in space for many years and cannot become hotels that can receive customers. Other hotel projects have reached the period of interior decoration and business preparation, and the management company personnel hired have also been put in place. Due to insufficient funds, the opening period has been delayed for two to three years at the longest.
The out-of-control and extension of the preparation period increased the whole investment cost, among which the soft cost increased the most. This has created another "black hole" for the hotel's future operating profit.
Third, look at the "black hole" of hotel profits from the capital structure.
The funds needed to build a hotel range from tens of millions to hundreds of millions or even billions. With this investment, the capital structure is often diversified. According to the general law, the current capital structure of hotel construction in China consists of the following parts:
1. The higher authorities allocate funds to government departments or enterprises and take out a sum of money to invest in hotels. This kind of capital structure is rare at present. The hotel built in this way is most beneficial to future managers, without financial pressure and debt burden.
2. After the self-financing hotel is established, it will attract investment by itself, and investors will determine the proportion of shares in the whole hotel according to the amount of capital invested. In this form, often in the process of hotel construction, different shareholders have different views on the investment subject. When many opinions cannot be unified, shareholders sometimes withdraw their shares or the funds are not in place. When this happens, organizers need to spend extra time and energy to raise the missing funds. If the funds cannot be solved for a while, it will affect the progress of the project.
Bank loan There are many hotels now. After the project is established, the funds will be completely solved by bank loans. Of course, there are many loan combinations, including long-term, short-term, foreign-funded and RMB. With a loan, there is a problem of interest. In addition to interest, foreign currency loans also have a problem of exchange rate difference.
No matter what interest combination, the average interest rate will be around 6%-7% for projects like hotels. If all goes well during the hotel construction, it will be a big burden for hotel managers to pay interest plus principal after opening. If the hotel's operating net profit is only 6%-7%, then the hotel has been operating for 10 years, and perhaps the hotel has been working for the bank for 10 years. Now many hotels in the country are in this state. Hotel operations can be relatively close to expectations. If it is excellent, the period of returning interest plus principal will generally be around 10 years, otherwise it will be longer. If some hotels are not well run, their operating profits are not enough to pay the interest of banks. After four or five years of operation, it is often unable to support, and finally the hotel can only be handed over to the bank. This is also the reason why banks have a lot of bad assets in hotels at present.
Foreign exchange loans are risky. If the exchange rate of hotel loans in the preparatory period is not good, with the rise and fall of the international foreign exchange market, the burden of repaying loans is not only interest, but also a huge exchange rate difference. Some hotels have to change bosses because of the exchange rate difference, and more than 90% of hotel owners are hotel loan banks. This is another reason why banks become hotel shareholders.
From the analysis of the structure of the above three funds, the first structure has become less and less, and the second structure plus the third structure is a common practice. If the structure is improper and the loan ratio is too high, this will undoubtedly lay a "black hole" for the future operation of the hotel. All the profits from the operation are used to repay the interest of the bank. While working in a bank, there is no data in the profit column of financial statements. If the problem of hotel preparation cycle is described in the second "black hole", the loan interest expense may be twice as much as the original loan. In this case, even the best managers may not be able to explain their profits to the owners.
Loan is an effective way to raise funds, but the loan ratio should not exceed 60%.
Fourthly, look at the "black hole" of hotel profits from the product type.
Most hotels, whether three-star or five-star, are almost fully equipped and any customer can stay. It is difficult to talk about distinctive products, let alone which hotels have distinctive services. I like the accommodation and breakfast that are popular in Europe and America. Hotel B, which has not yet appeared in China; Like Formula 1 Hotel in France, the service is perfect, and the furniture in the room is very reasonable. A room of 9 square meters can accommodate three guests. This hotel is popular with tourists, but it has not appeared in China. As for the real resort hotels, only a few have developed in Hainan and other places, and the resort hotels, services and facilities in the suburbs of the city have yet to be improved.
According to the five major city hotel products of European and American hotels, serviced apartment hotels in China are the most profitable among the five major categories at present. The reason is that this type of products and facilities are single, the building utilization rate is high, the employment rate is low, the market demand is large, and the existing serviced apartments and hotels are in short supply. Other classified hotels, in different cities, there are few real conference hotels, business hotels and holiday hotels, and there are even fewer boutique hotels with characteristics.
According to the principle of hotel price elasticity index, if the products and services are relatively standard and similar, the competition between hotels will be fierce and the price elasticity index will be large; On the other hand, if products and services have their own characteristics and are not similar and competitive, the price elasticity index will be small. Under the action of this principle, the current situation of China hotels is: the products are similar, competing with each other, bargaining, hotels have no core products, and they do whatever they have in the market. This is another "black hole" in the hotel's operating profit. The profits that the hotel should get are lost in the competition of similar products.
Five, from the management form to see the "black hole" of hotel profits
A large number of hotels have been built, and the main investors are all walks of life in the country. After the hotel is completed, there are management problems. Good management can make the hotel a cultural window of a city, and at the same time keep the hotel's real estate value and increase its value. There are five main forms of hotel management:
1. The biggest advantage of investors' self-management is that they have independent management autonomy, and they don't need to pay remuneration to operators or online sales fees. It can maximize the income of investors. However, in order to maximize the benefits, it is necessary and prerequisite that the investors have their own hotel management professionals, the hotel has a superior geographical location and a moderate hotel scale. If the necessary premise is missing, the investor has no hotel management professionals, the hotel location is not ideal, and the hotel scale is very large, then the risk of hotel management will be great, not only can not get the maximum profit, but also unnecessary losses will occur.
2. Investors operate and manage themselves, but the biggest advantage of joining the global online reservation system is that they have independent operational autonomy. They can join the global online reservation system only by paying fees, so as to improve the external influence of the hotel and bring overseas customers to the hotel through the network.
The affiliate network consists of two parts, one is the membership fee, which generally accounts for 2% to 3% of the room operating income; The second part of the fee is the booking transaction fee. The transaction cost of any room is about $7 to 10.
However, without professional management, hotel products and services can't meet the needs of customers. The price paid is that there may be almost no customers brought back from the Internet, and the influence of the hotel is difficult to expand through the Internet. The biggest interest risk is that the income of the network is not enough to offset the basic membership fee for joining the network. Internet fees will become extra expenses.
3. Signing a franchise agreement, the owner operates by himself, and the investor and the owner sign a franchise agreement with the franchisee, which can obtain many benefits that the owner needs. The franchisor can provide various consulting services for the owner during the preparation period, including helping the owner to choose the site, providing feasibility analysis and providing reference opinions for architectural design and interior decoration design. In the business preparation stage, the franchisee shall provide the owner with a complete set of management manuals and operation manuals. In the daily operation after opening, the shopkeeper can get long-term training and extensive consultation from the franchisor.
After signing the franchise agreement, the owner needs to pay for each support and service. There are two ways to collect the franchise fee. One is that according to the number of rooms in the hotel, the owner needs to pay $2 to $4 for each room every day as the joining fee. Others need to join the reservation network to provide special consultation, and the cost is calculated separately. If the owner needs more services, the sum of the costs may be greater than that of the management company. If the management of the hotel itself is not in place, expensive franchising may not achieve the expected business objectives, but will increase the normal operating costs.
4. The owner rented the hotel to the operator because the owner realized that he didn't have the ability of management and rented the hotel to the operator according to the expected return on investment. There is little risk of loss in this way, but the right to operate is lost. If the managers get excellent results, the owners have no other income except rental income. This income is limited, but it is insured.
5. The owner and the operator sign a management contract. Owners who are not sure about their own business will sign a management contract with the management group to solve the hotel management problems. If this form is adopted, the owner can enjoy the rising income of the hotel after paying the management fee stipulated in the contract, and vice versa. Whether the selected management group is suitable or not is the prerequisite for the success of this form. If the hotel is small in scale, low in grade and employs a high-grade management team, the increased income may not be enough to cover the increased expenditure. On the other hand, if you hire a hotel with huge investment and high-end luxury, the result will be unsatisfactory.
Six, from the target market and sales mix to see the "black hole" of hotel profits.
For hotels without experience and professional management talents, there is no clear target market and no special requirements for products and personnel before opening. There is no clear ratio between rooms and beds, and there is no clear direction for restaurants. The attitude of this hotel is that a product should cater to hundreds of guests. But the reality after the opening is that one cargo can't handle hundreds of customers. Hotels without a clear target market will never attract customers who can bring profits.
For experienced managers, if the target market is high-end leisure business customers, the market segments are 30% in Europe and America, 30% in Japan, and 40% in Asia and China. According to this market segment, in the recruitment of hotel employees, not only English but also Japanese are required. Such language configuration will not cause language problems in receiving customers. Restaurant arrangements include American steakhouse, Japanese restaurant, Chinese restaurant and 24-hour coffee shop. This catering structure meets all the requirements of the market segment. According to the source of the target market, there will be a reasonable proportion of bed allocation in the guest room.
Inexperienced managers, after opening, use all the guests. There are many customers in the conference market, so they want to be a conference market. As a result, they try their best to attract customers. Without a suitable size of venue, they use the banquet hall as a conference hall. Satisfy a large number of conference customers to eat at the same time, and then use the conference hall as a restaurant. It is the customers and employees who suffer, and finally the customer satisfaction will be affected. When designing a hotel to receive business customers, there are not enough business customers to patronize because of poor sales channels and inadequate products. Of course, when there is team business, we don't want to let go. After receiving the queue, the problem followed, and a large number of group guests were received, and there was a large shortage of rooms with two beds. Seeing the increasing number of Japanese tourists visiting China, they also actively strive to receive Japanese customers. As a result, the entire hotel can only find 1 2 Japanese-speaking employees, language becomes the biggest obstacle in reception, and the customer satisfaction index will not be very high. Such a large sum of money, because there is no clear target market, should get the operating profit, clearly into the "black hole."
The structural proportion of the sales mix is the same as the target market. The profit of the hotel is the highest from the room part, and the output of other parts is much lower. Inexperienced managers, when the rooms with high profit output cannot be sold, take the initiative to turn to restaurants and other departments with low profit output, spending a lot of manpower and energy, and the final profit will be far lower than the ideal expectation.
Seven, from the staffing and labor productivity to see the "black hole" of hotel profits.
With the increase of labor costs, more and more hotels see that the cost of this piece is constantly embezzling hotel profits. Yes, if hotels with some profits still follow the original staffing and labor productivity, it is an inevitable result that profits can't meet expenses.
The average staffing ratio of international hotel industry is one employee per room, which is 1: 1 in jargon. Most hotels in China are far from reaching this level. There are several reasons:
1. The organizational structure of hotels with unclear departments can be simply divided into two parts, namely, the service center composed of functional departments and the service center composed of human resources, planning and finance, marketing, engineering, security and other departments. The profit center composed of business departments consists of housekeeping department, catering department, entertainment department, shopping mall and other business departments. The two centers support each other and cooperate with each other, striving for the ultimate goal of hotel management, satisfying customers and making the hotel profitable. Under this structure, many hotels will not have offices and comprehensive departments. Party committees and trade unions may have a full-time cadre, and the work of the Youth League Committee may be concurrently held by a young manager. All the work in the office will be solved by an administrative assistant.
2. The relevant regulations of government departments did not take into account the actual situation of the hotel. According to the regulations of the National Labor Bureau, the automation equipment in the hotel needs to be watched by three shifts, which makes the hotel consume a lot of idle labor. There is no need to arrange personnel to look after the automation equipment of the hotel internationally. A rule can increase the hotel cost of 6 to 8 people. Another example is the foreign currency exchange business at the hotel front desk. According to the regulations of the bank, a shift must be equipped with more than two people before it can be approved. Other front desk staff are not allowed to work part-time. This regulation makes the hotel need to be equipped with extra staff, otherwise, when there is this business, the front desk staff can provide services to customers.
3. There is no specialized supporting service company in the world. There are many specialized companies that support the hotel business and can provide various services for the hotel at any time. Such professional companies include cleaning companies, maintenance companies, public relations companies, training companies, headhunting companies that introduce hourly workers with professional skills, etc ... In this way, as hotels, there are many jobs that do not require long-term employment of formal employees. As long as you sign contracts with these companies, you can get the services you need at any time.
At present, there are few professional supporting companies in China, and only the external wall cleaning company has been operating. If various professional companies are formed continuously, the number of long-term hotel workers can be greatly reduced.
Labor productivity is another evaluation index that has not attracted the attention of most hotels so far. Most hotels are concerned about how to control the approved total wages, without considering or trying to consider how to improve labor productivity. In the international hotel industry, per capita profit is a very important and meaningful indicator of operating efficiency. The higher this indicator, the better the hotel management. The higher the indicator, the lower the proportion of labor costs in revenue. Simple example: If the labor cost of selling a room is 200 yuan, when the price of a room is in 300 yuan, the labor cost accounts for 66.67% of the room income; When the price of a room is in 500 yuan, the labor cost accounts for 40% of the room income; When the price of a room is in 800 yuan, the labor cost accounts for 25% of the room income. This simple example tells us that at present, too many hotels only focus on how to reduce the labor cost of room 200 yuan, without studying how to increase the room price from 300 yuan to 500 yuan or even 800 yuan.
It is impossible to reduce labor costs without improving labor productivity. If the concept of hotel managers has not changed, hotel profits will fall into this "black hole" without feeling.
Eight, look at the "black hole" of hotel profits from the management function and effective utilization area.
From the perspective of hotel management, if every square meter can be effectively output, the operating profit of the hotel will not be a problem. In reality, there are too many hotels whose area can't reach the effective output, so the profit of the hotel is problematic. There are two reasons why the regional output in the hotel is invalid.
1. The function design is wrong and the operation is difficult. In the design of the hotel, the area of various facilities has certain matching requirements. The more scientific this ratio is, the more it meets the business needs, and the greater the square meter output in operation. For example, the total area of guest rooms generally accounts for 50% of the hotel's total construction area, the equipment floor and internal use area generally account for 10% of the total construction area, public areas such as walkways and lobbies generally account for 15% to 20% of the total construction area, and business areas such as catering and entertainment generally account for 20% to 25% of the total construction area. According to different hotel types, such as business hotel, airport hotel, conference hotel, holiday hotel, apartment hotel, ultra-luxury hotel, etc., the area ratio of guest room area, dining area, functional area, entertainment area, lobby and parking lot is different.
The proportion of hotels with special functions is more important in the design. For example, in some conference center hotels, there are only more than 200 rooms because the area of the conference venue does not match the room area (the conference venue can accommodate 8,000 people). This unreasonable design may be due to the loss of profits that this conference hotel should earn in the room part when holding large-scale conferences. If the number of rooms is 600, it will be much more reasonable. Part of the profits of 400 rooms in an unreasonable state naturally flowed into nearby hotels. These hotels didn't spend a lot of money on conference facilities, but because of the unbalanced design of the conference center, they easily got customers without promotion costs. In this case, from the perspective of a city, profits have not been lost, but from the perspective of an investor, profits have flowed into a "black hole".
There are quite a few hotels, in the preparatory period, the design units were not involved or invited at the initial stage, but professional design units familiar with the hotel industry were not invited. Design units unfamiliar with the specialty can't understand the functions of various hotel facilities, and can't make the design operate reasonably. The guest room is the protagonist of the hotel's profit, with good design, suitable area and high utility, which can meet the needs of different customers; The designer is inexperienced and covers a large area, but the use function is poor, and the customer will feel unspeakable. The design of the restaurant, the supporting kitchen area and the direction of the entrance and exit of the restaurant and kitchen will have a direct impact on the operation and service of the restaurant. For example, the kitchen design of some hotels is far away from the restaurant or not on the first floor, which will directly affect the speed of serving, the flow of people and the number of staff in the restaurant. In some hotels, the banquet hall is large enough to accommodate two or three thousand people, but there are only two or three toilets next to it. Problems often arise when there are large-scale activities to solve people's physiological needs. Some hotels don't have service elevators in the back area. As a result, the service can only use the passenger elevator, and the consequences can be imagined. Some hotels, after a long period of preparation, will find that many departments don't have 1 square meter of office space on the eve of opening, so they can only occupy it in expensive business areas. This will happen in many hotels. Some hotels even occupy a floor, all of which are used for internal office. Such office expenses may be 10 times of normal office expenses.
Some design units blindly pursue fashion and adopt the most modern ideas, the most expensive materials and the most complicated technologies in their design. Because there is no combination of business philosophy, the money spent by the owners is spent on visual decoration such as ceilings and walls. However, in the real functional design, there are many unreasonable places. Smart customers today don't spend money on gold foil stuck on the ceiling, and customers don't appreciate "works of art" that have no dialogue with them.
2. Insufficient operating experience and invalid utilization area If the hotel does not have the first reason, the owner does not find a professional and experienced manager and does not know how to use the existing operating space. As a result, the same area output is invalid.
Experienced managers are thinking about how to produce effectively for every square meter. The spare area in the lobby will operate a small and very warm piano bar. Newsstands, gift shops and small bakeries will be considered next to elevators and corridors 1 and 2 square meters, and every corner will be well arranged. The auxiliary commercial projects in these corners not only meet the needs of customers, but also have objective economic benefits.
Inexperienced managers create a lot of idle space, or operate inappropriate projects in inappropriate places. For example, a small bakery can't be operated in any corner of the floor, and it will usually be arranged near the restaurant or bar on the ground floor. Some hotels put bakeries together on the second or third floor of shopping malls, and the sales effect is not ideal. In some hotels, the lobby is big enough to drive, and it is useless to be empty. The style may be ok, but it is difficult to list the output of square meters.
The above two points show that the limited and expensive building area, whether due to the design reasons in the preparation period, the experience reasons in the operation period, the functional problems or the management ideas, makes the effective utilization rate of the area not high, which is another "black hole" that causes the loss of hotel profits. This "black hole" exists in many hotels at present, and often inexperienced managers realize it.
For the hotel industry, to be in line with international standards, we must first make the hotel profitable. To make a profit, we must find ways to block the "black hole" caused by the above reasons. If a hotel with a "black hole" already exists and it takes a period of time and great efforts to make a profit, then the newly-built hotel must not leave any "black hole" for future managers. Investors in the hotel industry can be from all walks of life, but the use of socialized professionals is indispensable.
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