What makes a budget hotel

So if you want to have a memorable holiday and live like a king then booking a luxurious hotel in Derbyshire is an ideal option for you. These facilities are only available in 5-star hotels. A budget hotel is not equipped with these facilities. When it comes to food quality, luxury hotels are a far better choice compared to budget hotels.

Restaurants and dine-in services are available everywhere. But the availability of cuisines and quality of the food differs. You can get the basics at any budget restaurant. But to taste exotic and authentic dishes you have to put up in a luxury hotel.

Breakfast inclusions are also a great feature that is offered by luxurious hotels. However, the concept of complimentary breakfast is not there in budget hotels. In case you want to have breakfast, dinner or lunch, then you can easily order the same from the restaurant kitchen.

Hotel managers who aren't directly competing with you might be another valuable source. Itemize the costs the established hotels incur. Important costs include staffing, maintenance, food, laundry, utilities, taxes, furniture, Internet operations and the computers and other equipment.

Calculate your first year's budget based on standard costs adjusted for anything that makes your hotel different. If you intend to be the only hotel in town with a four-star restaurant, your food costs won't match the competition's. Compare your hotel's strengths and weaknesses to those of your competitors. If drive-by traffic is important in your market and you're the first hotel visible when cars leave the interstate, that's a strength.

If drivers go past a half-dozen hotels before reaching you, that gives you a weaker position. Superior service, a newer, better-looking hotel or more amenities can increase your strength. Project your occupancy rates for the first year, based on your study of comparable hotels, adjusted for your strengths or weaknesses. Set your room rates based on your competition's rates and your comparable quality level.

Increasing the occupancy assumption in the budget requires increasing expenses, because the additional occupied rooms have to be cleaned. Increasing ADR does not increase expenses.

Budgeting requires predicting how the core markets the hotel serves will change over the upcoming year and the direction of the overall economy. Even though the budget process is a once-a-year task, gathering information about the hotel industry and the local economy is an ongoing process. This gives managers a clear idea of what the future may look like when they make assumptions for the key variables in the budget.

Rushing the planning process can result in a budget that is a less useful management tool than it should be. Managers have a tendency to build their expense budgets by simply taking last year's numbers and adjusting them upward by an assumed percentage, such as 5 percent. A better approach is to build a completely new budget each year, with justification for each expenditure. By Brian Hill. Process Budgets are prepared using spreadsheet software.