Mastering Key Operations Reports & Metrics. Presented by Rick Pastorino, REVPAR International, Inc. Michelle Russo, Hotel Asset Value Enhancement

Transcription

1 Mastering Key Operations Reports & Metrics Presented by Rick Pastorino, REVPAR International, Inc. Michelle Russo, Hotel Asset Value Enhancement

2 Presenters Richard (Rick) Pastorino is the founder and principal of REVPAR International, a boutique hospitality asset management and advisory firm providing services throughout the U.S., Caribbean, Latin America and Europe. Rick has extensive experience in all areas of hospitality advisory and asset management including new development and acquisition; economic valuation, workouts, deal structure, branding, financial and operational analysis, market feasibility and expert witness, litigation support. Rick is actively involved in the industry including the International Society of Hospitality Consultants; he has authored industry-related research including CapEx 2000 A Study of Capital Expenditures in the U.S. Hotel Industry, guest lectures, and speaks at numerous industry-related events. Michelle Russo, President and Founder Hotel Asset Value Enhancement Hotel Asset Value Enhancement, Inc. (hotelave) is one of the nation s leading owner-focused provider of advisory and asset management services to the hotel investment community with over $2B and 6,000 rooms under management. Over 20 year s hospitality industry experience. Certified Hotel Administrator (CHA) and Appraisal Institute Designated Member (MAI).

3 Roadmap Lingo Used In Industry Reporting Understanding Reporting Is Important Expense Reports Rooms Revenue Reports Service Score Reports Capital Expenditure Reports Data Sources

4 Industry Lingo Occupancy - Occupied Rooms / Available Rooms ADR (Average Daily Rate) - Total Rooms Revenue / Occupied Rooms RevPAR (Revenue Per Available Room) - Occupancy x ADR or Rooms Revenue / Available Rooms RevPAR Penetration - Property RevPAR / Market RevPAR GSI (Guest Service Score) or OSAT (Overall Guest Satisfaction): Physical and Service Scores Typically 1-10 or Relative brand ranking

5 Industry Lingo POR (Per Occupied Room): Expense Measurement Expense/Occupied Rooms Most useful for departmental expenses and expenses that vary with occupancy PAR (Per Available Room): Expense Measurement Most useful for undistributed expenses and comparison against other similar sized hotels

6 Industry Lingo GOP (Gross Operating Profit) and NOI (Net Operating Income): GOP: Total Revenue less Departmental and Undistributed Expenses Performance Tests are typically measured on GOP NOI: GOP less Management Fees and Fixed Costs (Insurance, Taxes, Reserve for Replacement, Leases)

7 Reports Are Useful For Lawyers You Work For an Owner What reports do you review to understand the current performance of the hotel or to calculate a performance default? You Represent the Lender of a Distressed Asset What reports tell you if there could be franchise agreement default risk? You Represent the Lender For a New Loan For a Large Group Hotel Is the borrower a competent manager?

8 Expense Reports Individual Hotel P&L STR HOST Report Benchmarker Report

9 Departmental Financial Statement Exhibit 1

10 STR HOST Report Exhibit 2

11 Exhibit 3A Benchmarker Report Sample 1: Summary Page

12 Benchmarker Report Sample 2: Labor & Expense BENCHMARKER SUMMARY LABOR COST ANALYSIS EXPENSES Comparative Set - Average of 4 Properties Doubletree Hotel Year End Ratio To $ Per $ Per Year End Ratio To $ Per $ Per 2007 Hotel Available Occupied 2007 Var- Hotel Var- Available Var- Occupied Var- Average $ Revenue Room/Year Room/Day Average $ iance Revenue iance* Room/Year iance Room/Day iance Rooms Department Salaries, Wages, and Bonuses $ 895, $ 3,028 $ $ 1,009, % % $ 3, % $ % Payroll-Related Expenses 282, , % % 1, % % Total Payroll and Related Expenses $ 1,177, $ 3,982 $ $ 1,322, % % $ 4, % $ % Food and Beverage Department Salaries, Wages, and Bonuses $ 565, $ 1,913 $ 6.40 $ 737, % % $ 2, % $ % Payroll-Related Expenses 237, , % % % % Total Payroll and Related Expenses $ 803, $ 2,716 $ 9.09 $ 991, % % $ 3, % $ % Other Operated Department Salaries & Wages - including Vacations $ 8, $ 30 $ 0.10 $ 34,969 NC % $ 117 NC $ 0.41 NC Payroll Costs & Employee Benefits ,205 NC % 41 NC 0.14 NC Total Payroll & Related Expenses $ 9, $ 30 $ 0.10 $ 47,174 NC % $ 158 NC $ 0.55 NC Administrative and General Department Salaries, Wages, and Bonuses $ 318, $ 1,077 $ 3.61 $ 372, % % $ 1, % $ % Payroll-Related Expenses 117, , % % % % Total Payroll and Related Expenses $ 436, $ 1,476 $ 4.94 $ 419, % % $ 1, % $ % Marketing Department Salaries, Wages, and Bonuses $ 222, $ 752 $ 2.52 $ 443, % % $ 1, % $ 5.18 NC Payroll-Related Expenses 97, , % % % % Total Payroll and Related Expenses $ 319, $ 1,082 $ 3.62 $ 554, % % $ 1, % $ % Property Maintenance Department Salaries, Wages, and Bonuses $ 159, $ 539 $ 1.80 $ 232, % % $ % $ % Payroll-Related Expenses 51, , % % % % Total Payroll and Related Expenses $ 211, $ 714 $ 2.39 $ 285, % % $ % $ % Total Overall Payroll & Related Expenses Salaries, Wages, and Bonuses $ 2,170, $ 7,339 $ $ 2,831, % % $ 9, % $ % Payroll-Related Expenses 787, $ 2,662 $ , % % $ 2, % $ % Total Overall Payroll and Related Expenses $ 2,957, $ 10,001 $ $ 3,620, % % $ 12, % $ % STOP 4 Number of Properties in Comparative Set 1 Number of Properties in Subject Set 296 Average Number of Rooms 299 Number of Rooms 81.8% Average Occupancy 77.9% Occupancy $90.66 Average ADR $90.83 ADR $74.15 Average RevPAR $70.72 RevPAR Exhibit 3B NC - Not Comparable * Expressed as percentage points difference

13 Revenue Reports Property STR Report Segmentation Report Reservation Report Pace Report (Rooms & F&B) Lost Business Report Third-party resources Hotelligence Report Rubicon Report

14 STR Report Exhibit 4

15 Sources of Business/Segmentation Exhibit 5

16 Reservation Report Exhibit 6

17 Pace Report Exhibit 7

18 Pace Report Exhibit 7

19 Lost Business Report Exhibit 8

20 Hotelligence Exhibit 9

21 Rubicon MarketVision Exhibit 10

22 Capital Expenditure Reports Annual Plan 10 Year Capital Plan

23 CapEx Report Exhibit 11

24 CapEx Report Exhibit 11

25 10 Year Capital Plan

26 10 Year Capital Plan

27 Guest Service Scores OSAT Guest Comment Cards Franchise Inspection Report

28 OSATs Exhibit 12

29 Guest Comments & Reports Exhibit 13

30 Franchise Inspection Report

31 Data Sources Smith Travel Research 735 East Main Street Hendersonville, TN Phone: (615) Fax: (615) TravelCLICK - U.S. Headquarters 300 North Martingale Suite 500 Schaumburg, IL Phone: (847) Fax: (847) salesinfo@travelclick.net PKF - Hospitality Research Group 3340 Peachtree Road, Suite 580 Atlanta, GA Phone: (404) Fax: (404) robert.mandelbaum@pkfc.com