BUSINESS MANAGEMENT
How to Calculate and Monitor Your Break-Even Point
Global Asset Solutions | August 26, 2020
COVID-19 presented many challenges for hotels who are currently striving to merely break-even instead of maximizing profit as usual. While hotels usually aim for 35% occupancy threshold, many are hoping that COVID-19 cost reductions will lower the break-even threshold. How can a hotel understand when is the right time to resume operations? What occupancies and rates should they be aiming for? How has the pandemic effected the BEP considerations? Through calculating a hotel’s BEP, hotel asset managers are able to determine when is the optimal time for a hotel to reopen or if it may be better to remain closed until higher occupancy levels are...
COVID 19: Making Your Hotel Business Future-Ready
July 14, 2020
Travel and hotel trade professionals are just beginning to find their feet after the unprecedented effects of almost zero global demand due to COVID-19. One thing is certain: an altered lifestyle will emerge as a result of this crisis. Businesses will either be sold, shut, hived off and in some cases thrive exponentially. The key to survive and subsequently thrive depends on many factors such as cash in bank, demand, debt ratio, liabilities both external and internal, flexibility and a robust plan to see through this period. Whilst some factors are beyond a hotel's control and not all issues can be rectified now, there are however key cor...
