Running a successful hotel group is no small feat. Managing multiple properties, ensuring exceptional guest experiences, and staying competitive in the hospitality industry can be challenging. One crucial aspect that often gets overlooked but is essential for sustainable growth is effective business management. In this blog, we’ll explore why hotel groups need professional business management services, particularly those offering fixed monthly fees.
Here are the top 5 reasons why you need it!
1. Fixed Monthly Fee
One of the key benefits of outsourcing your business management needs is the assurance of a fixed monthly fee. This predictability helps you budget more effectively and eliminates unpleasant surprises that can impact your financial stability. With a fixed monthly fee, you can allocate your resources more efficiently, focusing on enhancing the guest experience and expanding your portfolio.
We offer a fixed monthly fee, so you know exactly how much your cost is every month – no nasty surprises.
We can work with your existing tax accountant to fill the gap and give them quality and timely information; which in turn reduces your compliance costs too.
2. Timely and Accurate Reporting
In the fast-paced world of hospitality, timely and accurate reporting is crucial. While your intuition may give you a sense of your business’s performance, it’s not enough. Professional business management services ensure that your financial reports align with the reality of your operations. They can identify discrepancies, such as incorrect closing stock figures or mismatched wage costs and provide actionable insights to improve your profitability.
We take care of your reporting every week and month, so you can ignore the back end, leave it to us and focus on operations and strategy.
You already know how your business is performing “gut feel”; but how many times do you get a P&L and it doesn’t reflect what is actually happening in your business?
Our philosophy is the financial reports should actually reflect what’s happening in your business.
E.g. Cost of goods sold is too high or too low, because you didn’t get the correct closing stock figures right or your wage costs includes 5 weeks instead of 4 weeks instead of 30/31 days – matching to 30/31 days of revenue
3. Succession Plan for Your Business
Managing a hotel group involves dealing with various HR challenges, from employee leaves and turnover to recruitment and office infrastructure costs. Outsourcing your back-office functions can provide continuity in these areas, even during peak seasons like Christmas and Easter. It allows you to focus on core operations and growth while leaving the complexities of staff management to experts.
You don’t have to worry about employees – sick leave, annual leave, resignations, hiring, rehiring, which is costly. Plus, added costs of user licenses, subscriptions, desk space, phones etc.
Leave the continuity of the back office and staff on costs to us. Even in your busiest times like Xmas and Easter.
Accountability is a cornerstone of effective business management. A reputable business management service will hold you accountable for your hotel group’s performance. They act as a mirror, reflecting both your accomplishments and areas needing improvement. Regular meetings ensure that you and your management partner are aligned on your strategic goals and financial objectives. This commitment to accountability can drive continuous improvement in your operations.
We hold you to account and hold the mirror of truth in front of you to celebrate the highlights and point out the low lights – areas for improvement to focus and work on – the 1%’ers. I like to call this “POO” Power of One (don’t publish this… of course)
We run at least monthly meetings to ensure you (and we) are across every aspect of the business from strategy, financials, operations. You might even learn a thing or two about a Balance Sheet. We take action items and bring these to the forefront every meeting to ensure you and we deliver what we say.
5. You outsource IT, marketing, why should your back of house be any different.
Experienced business management providers are well-versed in industry benchmarks and best practices. They leverage their knowledge to identify areas where you can improve processes and systems. This proactive approach ensures that your hotel group remains competitive and operates efficiently in a constantly evolving market.
In the world of hotel group management, focusing solely on guest experiences and property operations is not enough. Effective business management is essential to drive sustainable growth, reduce costs, and stay competitive. Fixed monthly fee business management services offer predictability, accuracy, and accountability, allowing you to concentrate on what you do best – providing exceptional hospitality experiences to your guests. Don’t underestimate the value of outsourcing your back-of-house operations to professionals who specialise in finance; it may be the key to your hotel group’s success.
If you’re looking for a trustworthy holistic business management service, we’ve got your sorted! Get in touch with our team today.