142% Increase

Direct Cost  Rooms – 75% Lost Profit Figure  F&B – Highest Direct Cost Center  Other – Smallest Profitability

Rooms Direct Cost 2007 – 24% 2013 – 30% F&B Direct Cost 2007 – 65% 2013 – 71% Other Operations 2007 – 79% 2013 – 95%

Commodity Costs

Commodity Pricing

Potatoes 9.2% Oranges 12.2%

Tomatoes 6.9% Eggs 5.7%

43% Increase

F&B Revue Per Occupied Group Rom (RPOGR)

$20,000 F&B 200 Room Nights $100 POGR $20,000 Food & Beverage Spend 200 Total Room Nights

Your Expected F&B Contribution Per Group Room Night $100 Hotels Expected F&B Contribution Per Group Room Night $150 You have less leverage with rate and concessions

Your Expected F&B Contribution Per Group Room Night $200 Hotels Expected F&B Contribution Per Group Room Night $150 You have a ton of leverage with rate and concessions

Comp Policy Impact on Average Rate Staff Rooms Impact on Average Rate Gratuities Staff Impact Meeting Rooms 24 Hour Holds

Circuits $25k - $30K Signal $25k - $35K

25% to 35%

50% to 80%

80% to 100%

 Labor is the #1 Cost in a Hotel/Resort  Separate locations for Reception/Dinner  Outdoor Spaces run more labor typically  Turning rooms (Labor Intensive)  Good Information (Manifest/Arrival Times)  Turndown Service (VIP only)  Smaller Groups using Restaurant for Meals  Roll-in Buffets

Michael Dominguez Twitter – M_Dominguez Facebook - /dominguezm68