The financial plan fully reflects all expenses and possible income.
- Salaries and insurance deductions;
- Credit payments;
- Marketing and advertising;
- Expendable material;
- Additional expenditure.
As a result, even before starting a business, you will understand how much and where you need money.
But at the same time the entrepreneur also reflects the possible income and payback conditions in financial terms:
1. Revenue in the first month of operation;
2. Revenue in the first quarter;
3. Net profit for each period;
Based on all the data, the break-even point is calculated, the payback period, and in general, you can understand whether the hotel will be cost-effective.
When you buy a hotel, you can see all these indicators from the reports submitted by the owner.
On average, the hotel pays for 8 years, bringing a yield of 12% per annum. By putting the hotel under management in the Management Company, these indicators can be improved.
For example, hotels in the Travelto chain pay off in an average of 6 years, and the yield exceeds 15%. in addition, with the help of the management system, the hotel can be turned into a source of passive income.