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Buenos Dias plc is a Spanish hotel group operating across Western Europe. It provides economy-class hotels close to major roads.
You are provided with the following information:
 All hotels have 80 bedrooms, with double beds, and operate for 365 days per year.
 Sales volume is measured in room nights. Guests are charged per room per night (regardless of
single or double occupancy), including buffet breakfast.
 A light bites and beverages menu is offered 14.00 - 22.00 each day.
The first Buenos Dias hotel in the UK opened in April 2017, near Exeter Junction 31 of the M5 (see Appendix I). This location was chosen as it is at a major point in the UK road network connecting visitors to key tourist locations in Devon and Cornwall (via the A30 and A38).
Reviews are being undertaken on cost performance, pricing, operational management, and longer-term proposals. For ease of analysis, 30-day months are assumed.
You are a management consultant providing evaluations and recommendations on elements of this review to the Buenos Dias , as specified


Question :

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BUDGETING & PLANNING A cost performance report for the Exeter hotel for the three months ending 30 November 2021 shows: Budget Actual E E Food and other consumables 75,000 85,500 Labour 57,600 65,800 Other variable costs 11,500 14,150 Fixed costs 90,000 92,200 Number of rooms occupied 5,760 6,100 The budget is set by head office for all hotels, and prepared based upon organisation objectives of: (i) achieving 80% occupancy over an average (30-day) month and being profitable on every night of occupancy.

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Requirement :

Evaluate the performance of the hotel. Explain reasons and provide future recommendations relating to your evaluation.

Answer & Explanation
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