Independent Review of Operating Budget

Project Scope

Horwath HTL was engaged by a commercial bank to conduct an independent review of the operating budget for a Cape Town hotel, which had been prepared by the hotel’s management company for the upcoming financial year. Our task was to assess the validity and accuracy of the budget by performing a thorough analysis of its underlying assumptions, projected revenues, and operating expenditures.

The review involved benchmarking the budget against industry standards and similar hotels in the region, ensuring that the financial projections were in line with market expectations. We carefully examined the revenue assumptions, considering factors such as occupancy rates, average daily rates (ADR), and other income streams. We also scrutinised the expenditure assumptions, looking at costs associated with staffing, maintenance, utilities, marketing, and other operational areas.

By providing this independent review, Horwath HTL helped ensure that the operating budget was both realistic and achievable, enabling the bank to make informed decisions regarding the hotel’s financial performance and its potential for investment or financing.

Localisation du projet

Cape Town, South Africa