Opening a new for a luxury boutique hotel, an excellent evaluation of cost, budget and performance are required. Project management techniques are required in the scenario to plan for the cost, budget, and performance of the hotel. For a project to be successful, a correct appraisal should carry out to find the benefit and possible cost of the project. Using, the stated analysis, the benefits should exceed the costs of the project. Can be possible through the preparation of a budget and balanced scorecards. Through the use of these tools, the profits the expenses of the new hotel will be identified.
A budget is an important tool in the project appraisal. There are many definitions of a budget, but generally, it can be defined as a document with specific items in different categories with the comparable prices. There are many components, especially, expenses that can be found on any project. They include employee compensation, contract services, supplies, related expenses. On the other hand, balanced scorecards are different.
Balanced scorecards contain important indicators called key performance indicators which are divided into different categories. However, there are no set indicators that should be used in the projects. But at the same time, there are area four main used in typical projects. Some other projects can have more that these four categories. Using the knowledge of the budget forming and balanced scorecard.
The new hotel formed will have many expenses and the available amount of the money to spend on the expenses. On reviewing the scenario, there are many calculations and decision that will be important in the decision making concerning the new hotel. The decision will be made based on the following suitable building to be chosen, planning the capacity, services, and branding, among others. However, the decisions made should enable the new hotel to achieve the objectives. The objectives of the firm include having the 25 and 40 up to market rooms and it must be suites in the area which assures a high level of accuracy. The budget and scorecard of the firm can be prepared for the new hotel.
Budget Template
Total income
Income budget
Operating incomes .
Sales of January .
Sales of February
Sales of March
Sales of April .
Sales of May
Sales of June ..
Total income from sales: ..
The Expenses
Operating expenses of the hotel ..
Accounting and legal fees ..
Depreciation of facilities
Payroll expenses ..
Taxation ..
Interest expenses .
Rent .
Insurance .
Supply income .
Total expenses .
The anticipated profit (Total Income- Total expenses)
Balanced Scorecard
Bibliography
Brow, S., 2012. Examples of a Project Management Budget. [Online] Available at: http://www.brighthubpm.com/templates-forms/61658-examples-of-a-project-management-budget/[Accessed 28 Feburuary 2016].
Javier Pajares, A. L.-P., 2010. An extension of the EVM analysis for project monitoring. Journal of Project Management, p. 615–621.
Shamas-ur-Rehman Toor, S. O. O., 2010. Beyond the ‘iron triangle’: Stakeholder perception of key performance indicators (KPIs) for large-scale public sector development projects. International Journal of Project Management, Volume 28, pp. 228-236.
