Hotel Operating Profit Evaluation HOPE Hotel Operating Profit Evaluation

“It’s like a STR report for Expense & GOP” HOPE Purpose Show Owners how to improve Profits by increasing their operational awareness

Hotel Operating Profit Evaluation What HOPE is about We want to bring the same awareness to GOPPAR as STR brought to REVPAR Raise owner/operator awareness of issues effecting Profit Give owner/operators a free resource for comparing operating profit to other hotels Provide owner/operators with a “what if” tool to see how changes in various facets of their operation can improve profit Provide a Host style report at no cost to participating hotels Improve awareness of the Profit cycle of hotels, and why details in all areas are important

Hotel Managers = Reactive Guest Expectations Market Dynamics Rate Placement Competitive Position Staffing & Amenities Rooms Sales Service Level & Expenses We tend to see each of these as separate tasks, often give them attention only as trouble arises, and may not realize they are all related to profit

Good Hotel Managers are like

We want to change that focus Market Dynamics Competitive Position Rate Placement Guest Expectations Staffing & Amenities Rooms Sales Service Level & Expenses It’s rarely one thing, and even if it is, everything in the cycle will still be affected. “Fix the problem, not the blame” Pulsifer Profit Loss

Hotel Operating Profit Evaluation How HOPE works Hope provides two separate methods: Projection and Actual Basis Selects comparable hotels based on hotel profile points, not just geography Requires a minimum amount of manual input, and can import detailed accounting data electronically. Displays an analytics dashboard, to highlight trouble areas, and provide a simple what if tool for assessing the impact of improvements

Two Methods PROJECTION METHOD ACTUAL METHOD Uses #Keys, STR Indexes, Online Reputation, ADR, Occupancy, Market Type, Property Type Selects comparable hotels based on the data points above, and creates 3 tiers based on GOP results Projects what cost and profit should be, based on Profile and Comp Set ACTUAL METHOD Starts with the same selection criteria as projection Compares owner’s results to hotels of similar profile. Provides the basis for identifying areas where improvement can be made. Gives direct links to additional tools

Two Methods PROJECTION METHOD ACTUAL METHOD Dashboard indicators highlight areas where improvement will most impact profit Gives owners a set of comparable values, and an estimate of where their spending should be. Allows owners to think about operational costs in general, without immediately exposing actual financials. ACTUAL METHOD Is secured to the owner’s login. No one can see an individual hotels results except Owner. Comparison of Actual data will allow for more detailed analysis and feedback. Does require that financial information be in a standard format.

“What If” Hotel Operating Profit Evaluation Even if you choose not to share your detailed expense data, HOPE will project what your GOP should be. The dashboard will provide immediate feedback on how you are performing to the comparable hotels in each of the key areas. The dashboard panels each allow you to play with changing your performance level, and see a re-forecasted GOP.

Awareness is Efficiency Efficiency is Margin Margin is Profit Profit is Money Marcus Lemonis (The Profit) Hotel Operating Profit Evaluation WHY we created HOPE History has proven that improvement comes from increased awareness and accuracy of projections. We want to provide owners with a tool that allows them to ask the right questions. We want to reintroduce metrics, reports, and processes that were used successfully to build many of todays top brands and management companies. To provide simple view of profitability. More numbers is not always better. We want to help owners to be more profitable, and know that if we can, we will profit too. If you can't explain it simply, you don't understand it well enough. - Albert Einstein

WHO is CIA? 77 Rooms to Opryland Not What, Not How, WHY? 1989 – Developed Sales and Catering System for Hilton Hotels 1990 – Began consulting with PROMUS Hotels on Budget preparations and ownership presentations 1992 – Developed Budgeting and Forecasting System for PROMUS Hotels 1995 – Began Selling Sales and Catering as well as Budget and Forecast System to Management Companies and Individual Properties 2005 – Developed Daily Accounting Software for Carlson World Wide – Radisson Hotels / Country Inn and Suites 2006 – Developed Preventative Maintenance application for FelCor Lodging Trust 2007 – Developed Asset Replacement Calendar for FelCor Lodging Trust 2008 – Developed CIA Online, web based Dashboard and BI tool 2014 – Formed beta user group for developing CIA Labor Optimization SAS 28 years working with hotel operators wanting to improve profitability 77 Rooms to Opryland Every property is different, but there are some common principles It is unlikely to be one thing Not What, Not How, WHY? CIA promotes Predatory Planning Work on your business, not just in your business

About HOPE I don’t want people knowing what I make The data you enter is stored in an unidentifiable manner. We NEVER allow anyone but you to view the data entered for your hotel. Your data will be used in aggregate, for developing profit and expense ranges for comparable hotel sets, and in aggregated reporting. What does this really cost Like with the STR report, the base level of reporting and features are FREE. There are add on services, like detailed Labor and Segmentation analysis, that are available for a fee. Electronic conversion of accounting data may become subject to an annual fee beyond year 1. Additionally, CIA offers applications and services for complete budgeting, forecasting, and tracking to hotel owners and operators.

Visit us at www.ciasoft.com or email sales@ciasoft.com Thank You for your time For more information about HOPE, or to find out how to create a login and get started today: Visit us at www.ciasoft.com or email sales@ciasoft.com