Hotel Budget

A hotel budget is a financial plan that outlines expected revenues, costs, and profitability for a
defined period, usually one year.
Why it matters:
The budget acts as a reference point for performance evaluation and financial discipline.
Practical use:
Management compares actual results against budget monthly to identify variances.
Real-life examples:
ADR exceeds budget, but GOP underperforms due to higher labor and energy costs, highlighting
a cost-control issue rather than a pricing problem.