Hotel Operating Profit Evaluation Financial data from hundreds of hotels Property based profile Free to owners Provides a STR report style report for expenses and profits www.ciahope.com 1 minute

What is a high profit hotel? GOP 53.8% Labor 13.8% GOP 50.1% Labor 14.7% GOP 47.0% Labor 16.0% 1 minute

WHAT is Optimal Labor Cost Labor Cost % Sales Revenue $276,792 Payroll Dollars $49,150 Payroll Cost % Sales (Payroll Dollars/Revenue) 17.76% Occupancy 80.2% Average Rate 91.57 Midscale Labor Cost Target 17% to 19% 1 minute

“Why” it’s worth the effort SAMPLE Keys 75 Occupancy 70.0% Average Rate $90.00 Revenue $1,724,625 Net Income 15% $258,694 Payroll Reduction -1% 17,246 Benefits Impact Raw Payroll $396,664 PT&EB (Burden) $74,176 Burden % Payroll 18.7% Payroll Reduction w/Burden $20,350 Payroll Reduction % increase NOI 7.9% 2 minutes

Have detailed, well thought out Performance Standards Use automated, controlled Scheduling processes Use a variety of metrics to maintain a high awareness of their Labor Cost Create 30-60-90 day Forecasts to spot problems in advance, and have time to make adjustments

Standards Productivity Standard – How you decide (or should decide) how many employees you will need to service the guests on a day by day basis. Driver – What determines the number of hours you will need for each position. Format – When do you add hours for a job? Do you add them by shift? full time? part time? per room? 10 minutes Factor – How many hours do you add?

Scheduling Weekly Forecast – Start with ChoiceAdvantage Forecast Overview, estimate how much more you will pick up Staffing Guideline – Combine the Day by Day Forecast and your standards to find out how many hours to schedule. Assign employees accordingly. Daily Report – Check each day to see if your forecast is accurate, if you are maintaining schedule, do you need to adjust the rest of the week 10 minutes Weekly recap – Did we achieve our goal, was our forecast right, do we need to change a standard or make other adjustments

5 Minutes a Day 2 Awareness is Efficiency

63% 20% Profit Profit Labor Cost / Revenue Bottom Line... Will you make a profit?

Hours Worked/ Rooms Sold Are you managing to business levels?

Revenue / Hours Worked Do you need more rate?

Compared to others Am I doing the job? Where can we improve?

Compared to others Am I doing the job? Where can we improve?

Know each job What determines my schedules?

What drives hours What determines my schedules?

What drives hours What determines my schedules?

What drives hours It can’t be done.

What drives hours Efficiency is Margin, Margin is Profit

What drives hours How does a standard help me make more?

Forecasting 30 – 60 day Forecast – Start with ChoiceAdvantage Forecast Overview, estimate how much more you will pick up. Staffing Guideline – Combine the Day by Day Forecast and your standards to find out how many hours to schedule. Know your minimum payroll cost and when payroll increases. 3 Conditions – Days not covering minimum payroll High revenue days with low house turn Days near the low end of a Staffing Level 10 minutes

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if you sign up for a demo today How can CIA help? Computer Ingenuity Associates, Inc. Jim@CIAsoft.com Hotel Labor Optimization if you sign up for a demo today $400 per year license Free Setup sales@ciasoft.com Regularly $900