Your hotel’s or facility’s function will affect the cost of your budget. The size and scope of a hotel, or other facility is up to you. They are more complicated the larger they become.
A smaller hotel or facility will usually have a Front Office, Housekeeping and Maintenance. The Owner is responsible for controlling the expense through the General Manager. The owners were key decision makers in the preparation of the budget for the year with assistance from an accountant. This budget is calculated based upon the expenditures incurred in the past years as well as other events which will impact the creation of the next budget.
Larger hotels can have more complicated expenses because the operations vary from those that are responsible for smooth running the hotel. International hotels have a budget that is managed by every department, with assistance from the Financial Controller or General Manager. The budget then gets submitted for approval to the owners/ corporations. After the approval, the department heads are held responsible for ensuring the allocation of budget is controlled and monitored based on occupancy. Each month, the General Manager receives a copy the budget results and shares them with each department head.
Administration, Front Office, Housekeeping, Cleaning, Maintenance, Food & Beverage, Food & Beverage, Catering, Finance, Human Resources, Recreation, and other related departments are examples of departmental roles in a large hotel. These departments each have their own sub-departments like the Front Office, Bell Service/ Concierge and Housekeeping. There is also a Flower shop, Gardening and Landscaping and Upholstery shops. Engineering can include Carpentry and Masonry.• Food and Beverage including Banqueting, Outside Catering, Kitchen with Pastry Shop; Finance with Receiving, Purchasing, and Storage; Leisure with Swimming Pools, Golf Courses, Tennis Courts, Spa, etc.; Human Resources with Training and Clinic.
Two types of budgets are used by the housekeeping department and all other hotel departments. There are two types of budget: the Operational Budget, and Capital Expenditure Budget.
1) Operational budgetThis is how expenses are allocated to each department for smooth operation. The control of expenses in hotel operations is based on the occupancy rate. Because occupancy forecasts for other countries or areas are not reliable or predictable, the budget can fluctuate.
These are the basic operational costs of Housekeeping:
A) Human Resources
b) Linen & Towels
c) Supplies and Amenities for Guest
d. Cleaning Supplies
e) Laundry Products
f. Machine, Tools & Equipment
g. Decoration
h) Miscellaneous
i) Stationery and printing
Housekeeping has budgeted items or sections that can be divided among other departments, such as the following:
1. Repairs and maintenance
This operational budget usually is divided equally between Engineering and Housekeeping.
2) Uniform Budget
The Executive Housekeeper prepares uniform expenses. This includes all of the elegant, comfort, durability and styles as well as colors, functionality, color choices, and style. The Executive Housekeeper selects the appropriate style uniform and coordinates with each concern department. After the executive housekeeper has received approval, she submits them all to the General manager for coordination. This ensures that the hotel’s image is perceived well by guests. Last, they will endorse the financial controller for each department’s allocation of the budgeted amount.
(3) Decoration
One of the departments in the hotel is housekeeping. It assists with the exterior and interior beautification. You can decorate with fresh flowers or artificial, according to the hotel’s policy. There are also hotels that ban artificial flower arrangements because of fire danger issue. The most requested items were flower arrangements for guestrooms and food and beverage functions. Outside catering was also available. Lobby, convention center and other areas require flower arrangements are some examples of decoration.
4) Stationery and Printing
This budget is shared by the Front Office and Housekeeping departments.
5) Miscellaneous
This budget may be divided between the Housekeeping department and other departments depending on which type of expenses are incurred.
Capital Expenditure is the second category of housekeeping budget.
Capital expenditure budget is the funding of specific items or projects that will aid the hotel in operation. For Housekeeping projects, these could include a replacement or addition of a Housekeeper cart or Laundry washer and dryer. Building a Laundry Shop outside customers is also possible. Replacement of vacuum cleaners or replacement of old beds and furniture are usually done either floor-by-floor or segmentally. The CAPEX budget is usually distributed in the same fashion as the operational budget. If the item/s has a specific lifespan, replacements are done each year. The hotel/facility will be maintained in pristine condition, and equipped with the latest technology. CAPEX is the most efficient way to keep the hotel in good condition. It also helps avoid the depreciation on large items, which can prove difficult because they are expensive to acquire.
It is essential that funds are allocated for operational and maintenance needs of the hotel. This should be done based on the occupancy rate. Key department heads will know how to adjust the budget accordingly. The budget preparation should be done by key personnel responsible. They must ensure that funds are used for their intended purpose. It will prove difficult to track the goal and achieve a specific result. Capital Expenditure can be easily destroyed if the Operating Budget isn’t properly managed.
Budget Capital ExpenditureAs important as Operating budgetWhen it comes to the hotel industry.