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Finance Excell Sheet

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Boutique Hotel Introduction The hospitality industry is very diverse. It has a number of income generating activities that are viable. The first way that Boutique hotel can generate revenue is buy-selling rooms. The rooms can be used by revelers who visit Barcelona for business or leisure. The hotel can also earn some revenue by selling foods and drinks. That means that the hotel will take the form of a hotel and restaurant that has accommodation. The sale of food and drinks will be profitable because it will be a source of additional income. The other source of income for the hotel will be the hotel offering conference services. The hotel can have seminar rooms that can attract corporate for meetings in the hotel. That will add income for the hotel (www.ceav.info/publico).The hotel can be located at Barcelona, which is a trendy district. The partners will incur the cost of converting the three floors building into a hotel. The third floor should be converted to be accommodation rooms. The second floor should be conferencing rooms and the first floor should be restaurant part. The partners will incur the following approximate costs.Annual Cost of lease= approximately 1,800 pounds per month which is equivalent to 21,600 per year.Renovation cost- the cost will be equivalent to 35,000 pounds (that will include purchase of furniture).Variable cost per room- the variable costs will be approximately 5 pounds per room per day.Staff costs- the staff costs will be 1,500 pounds per month for approximately 15 employees.Additional overheads- additional overheads will be approximately 6,000 pounds per year.Number of rooms- 5Average rate per room- 50 pounds per dayPayment behavior- the guests should pay either using debit or credit cards.ReferencesSpanish Confederation of Travel Agency associations. Retrieved on 31st March 2014. From http://www.ceav.info/publico/constitucion.htm