How to prepare a hotel budget: 5 steps to a rock-solid 2027

Budget Inspiration Month: start October strong with Statler

Autumn is slowly gaining ground, and it’s not only nature that shows it. For hoteliers, this is also a time for calm and reflection. Figures for 2026 are being analysed and budgets for 2027 are being drafted. That’s why we’re declaring October Budget Inspiration Month. Statler is happy to help you put together a rock-solid budget. We share tips and point out potential opportunities or blind spots in your operations.  

‘Drawing up a budget is about more than crunching numbers. Above all, take a critical look at your business. Because if you keep doing what you’ve always done, you’ll keep getting what you’ve always got.’ 

Why hotel budgeting matters

We don’t need to tell you that the hotel industry is an incredibly dynamic business. You experience it every day on the shop floor. Surprising guests with your hospitality time and again, building lasting relationships with good suppliers and, last but not least, putting together a well-oiled team: it all calls for strong leadership and a clear vision of where you want to be in the long term. And what about all the factors beyond your control, such as rising tourist taxes or the unrest in the Middle East? Reason enough to stay firmly in the driving seat. 

What can you do yourself? 

Quite a lot, actually. Naturally, it starts with a solid financial foundation. With Statler, you set up your accounts in line with the USALI Standard (the Uniform System of Accounts for the Lodging Industry), giving you quick insight into the ins and outs of each department. You can easily compare your hotel with the competition, and the clear overview inspires confidence among banks and investors. 

So much for the usual need-to-know information. Now the real fun begins! Discover all the nice-to-know tips that can take your operations to the next level. 

Step 1: Take stock of your USALI figures from 2023 onwards

Clear your diary and schedule a morning with your management team and your external accountant, if you have one. Put your USALI annual figures from 2023 onwards side by side. 

• What trends do you see in revenue? Is revenue in the various departments growing at least in line with inflation?

• How is the Departmental Income of Rooms developing? If it stays below 70%, there is certainly room for improvement there.

• How is the Departmental Income of F&B developing? And is it around 30-35%? Are purchases still 25-30% of revenue? What is the revenue per hour worked?

• Do your other revenue streams bring in more than they cost you in purchases? And are you still applying the right margins?

• How have overhead costs developed? Are they still within the target ranges?

Step 2: Dive deeper into margins and cost drivers

Now that the broad outlines are clear, take a closer look at the underlying figures. This immediately gives you concrete pointers for your team. Together, you can work on them and use these figures to steer performance throughout the year. 

Managing margins

Is the margin on certain drinks categories too low? Then recalculate your drinks list straight away, using your target cost-of-sales percentage. Bear in mind that this doesn’t mean you can simply tick the task off. It’s one you need to monitor continuously. After a few months, check whether the result has improved or whether you need to recalibrate. Menu costings are best carried out around the end of the year and before the summer. That way, you can always factor in the latest purchase prices and keep your margin where it should be. 

Break costs down into quantity × price

Both revenues and costs consist of two variables that you can break down further: quantity x price. Are your linen costs too high, for example? Then map out what you spend per room/guest. Next, look at the price you pay for a given level of quality. 

Step 3: Set 7 SMART improvement goals with your team

Alongside the overall budget, agree seven improvement goals for the coming year with your team. What gets measured gets managed, so make them SMART goals. To get you started:

1. Guest Supplies as a percentage of room revenue from 1.5% to 1%

2. Cleaning time of 20 minutes per room instead of 25 minutes

3. F&B revenue per hour worked from €55 to €60

4. Beer cost of sales from 29% to 27%

5. Margin on parking revenue from 15% to 20%

6. Energy costs from 3.5% to 3% of revenue

7. Other A&G expenses from 4% to 3% of revenue

   
   

These goals are then discussed every month alongside the P&L meeting. That way, you can keep taking action throughout the year and achieve lasting improvements in results.  

Step 4: Examine 1–3 P&L cost lines every month

If this inspiration session leaves you full of energy, you can also tackle a few areas each month. From the P&L, pick 1 to 3 cost lines to examine in more detail. The following month, you report back on your findings and recommendations. Working this way ensures that the entire P&L is put under the microscope and further embeds this culture of continuous improvement.

Step 5: Benchmark KPIs across your hotel chain

If your hotel is part of a chain, you have valuable information ‘in-house’. We recommend benchmarking KPIs and sharing information between hotels. That way, you learn from each other and can start putting best practice into action. So use data from your own chain (or the hotel industry at large) to make lasting improvements to the P&L.

Statler Optimizer: see where your P&L can improve

You’ll want to do more with this!

Statler BI provides insight into the P&L and areas for improvement through our Optimizer. It sets your hotel’s figures against the optimal KPIs, so you can see at a glance where you’re falling short or where there are opportunities for improvement. View the report in your portal and get started. 

Want to bounce ideas off us one-to-one? Book a Budget Inspiration Session. We’re happy to help. 

Stefan & Maarten

Email: info@statler.bi 

Tel: +31 (0)20 700 66 30