1. Financial Benchmarking Your Resort & U.S. Resort Industry Overview

2. Robert Mandelbaum robert.mandelbaum@pkfc.com
Presented by
Mark Woodworth
Robert Mandelbaum

3. Presentation Outline Industry Overview Benchmarking defined
When did benchmarking start?
How to benchmark!
Why use benchmark$
Resort financial benchmarking
Uniform System of Accounts
Methods of financial comparison
Case study
HRG’s Benchmarker®

4. U.S. Resorts Annual Change In Total Revenue
Source: PKF/HRG Trends in the Hotel Industry

5. U.S. Resorts Change In Total Revenue By Region
2001
2002
2003 Preliminary
Northeast
-5.4%
-6.2%
-5.8%
North Central
-1.7%
3.6%
-2.8%
Southeast
-7.6%
-5.6%
-1.3%
South Central
-9.2%
3.4%
0.3%
Mountain/Pacific
-9.3%
-3.3%
0.0%
Source: PKF/HRG Trends in the Hotel Industry

6. U.S. Resorts Annual Change In Rooms RevPAR
8.1%
7.7%
8.0%
4.0%
6.2%
3.2%
2.5%
2.2%
-4.1%
-8.0%
Source: PKF/HRG Trends in the Hotel Industry

7. U.S. Resorts Annual Change In Total Revenue And Expenses
Source: PKF/HRG Trends in the Hotel Industry

8. U.S. Resorts Annual Change In Net Income*
Note:* - Before capital reserve, rent, debt service, income taxes, amortization, and depreciation
Source: PKF/HRG Trends in the Hotel Industry

9. Comparative Operating Performance Other Property Types
Source: PKF/HRG Trends in the Hotel Industry

10. Comparative Operating Performance Comparable Full-Service Hotels
Source: PKF/HRG Trends in the Hotel Industry

11. Merriam-Webster’s Collegiate Dictionary
Definition
“bench-mark-ing” Noun (1976): the study of a competitor’s product … in order to improve the performance of one’s own company
Merriam-Webster’s Collegiate Dictionary

12. When & Who Started Hotel Benchmarking?
Harris Kerr & Foster [PKF Consulting]
Laventhol & Horwath
Smith Travel Research
The Hospitality Research Group [HRG]
Benchmarker®
Industry Averages vs Customized

13. The COMP Set vs. Competitive - Sub Market Geography - Top Line
- Market Share
Comparable / Criteria
- Also Geography
- Occ – ADR – RevPAR
- Mix of Revenues
- Bottom Line Comparison
* Segment
* Size
* Location
Criteria driven
Physical & Financial Attributes

14. How To Benchmark!

15. Why Use Benchmarking? Loan Application Insurance – loss
Tax - reduction
Measure management
Budgeting
Today Robert and I are going to talk about FINANCIAL benchmarking.

16. Applying Financial Benchmarking To The Hotel Industry

17. Common Language Uniform System of Accounts for the Lodging Industry
9th Edition – Current
10th Edition – Release in 2004
For Use in 2005
Robert Mandelbaum – USALI 10th
In addition to CPA’s ~ AH & LA has included ~ Hotel management and financial consultants.

18. Uniform System of Accounts
Operating Departments
Rooms, Food, Beverage, Minor Operated, Rental and Other Income
Undistributed Departments
A&G, Marketing, P.O.M., Utilities
Fixed Charges
Management Fees, Property Taxes, Insurance
Robert Mandelbaum – USALI 10th
In addition to CPA’s ~ AH & LA has included ~ Hotel management and financial consultants.

19. Methods of Financial Comparison
Total Dollars
Percent of Department Revenue
Percent of Total Revenue
Dollars Per Available Room
Dollars Per Occupied Room
Robert Mandelbaum – USALI 10th
In addition to CPA’s ~ AH & LA has included ~ Hotel management and financial consultants.

20. Comparable Property Selection Criteria
Subject Hotel
Comparable Criteria
Property Type
Resort
Geography
Florida
Southeast
Affiliation
Chain Affiliated
Rooms
252
Occupancy
67.6%
60% - 70%
A.D.R.
$294.60
$275 - $325
Robert Mandelbaum – USALI 10th
In addition to CPA’s ~ AH & LA has included ~ Hotel management and financial consultants.

21. Comparable Property Selection Criteria
Subject Hotel
Comparable Criteria
Recreation
Tennis
No Golf
Other Operated Dept.
% Of Total Revenue
6.8%
5% - 15%
Robert Mandelbaum – USALI 10th
In addition to CPA’s ~ AH & LA has included ~ Hotel management and financial consultants.

30. The Hospitality Research Group of PKF Consulting
Benchmarker®
…of Hotel Profits
Robert Mandelbaum – USALI 10th
In addition to CPA’s ~ AH & LA has included ~ Hotel management and financial consultants.

31. Benchmarker® Customer selects properties Choice of 7 segments
All U.S. cities
24 hour delivery
$175 on up
Excel XLS format

34. Thank You
Contact Information
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