OPERATING COST MINIMIZATION AND MONITORING

OUR PHILOSOPHY

Every line item of the financial statements should be reviewed for cost effectiveness, efficiency and reasonableness. We achieve this goal by leveraging our expertise of knowing the industry averages and norms in the hospitality field. By applying these norms to your specific property, we eliminate all unnecessary costs and enhance the costs necessary to provide a maximum return on your investment. We maintain the necessary relationships to facilitate purchasing, financing, new ventures, and property sales.

OUR PROCEDURES

  • Each financial statement line item is evaluated for efficiency and effectiveness

  • Comparisons are made to industry standards to identify areas of weaknesses and strengths.

  • Comparisons are made to budget to evaluate hotel and staff performance to identify any unusual costs or events

  • Comparisons are made to experience factors, such as prior year and industry norms, to evaluate hotel and staff performance and identify unusual events

  • Vendor purchasing and contract negotiation is performed to seek the best available pricing:

         

  1. Bulk buying is done with other properties

  2. Established relationships with vendors facilitate better prices, quality, terms, and service levels

  3. Price comparisons are made on a continuous basis to ensure the best available price is attained