1. Hotel Operating Profit Evaluation
HOPE
Hotel Operating Profit Evaluation

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

3. 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

4. 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

5. Good Hotel Managers are like

6. 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

7. 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

8. 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

9. 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.

10. “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.

11. 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

12. 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

13. 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.

14. 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:
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