"The researchers identified a significant blind spot in industry knowledge and took bold steps to fill that gap," said HFTP CEO Frank Wolfe, CAE. "Their work is a crucial contribution to HFTP's initiative to provide current, high-quality educational resources to our industry."
When asked their thoughts on the outcome of the study, the three researchers commented as follows:
"An interesting aspect of this study was the variety in the interpretation of what should be contained in the pre-opening budget. The study reflects the need for more clarification and guidelines on the timing and types of costs that should be included in order to be compliant with GAAP and provide management with information that is useful in making decisions during this phase of project development."
The researchers surveyed executives with experience in hospitality and/or finance to understand their experiences and unique approaches to the process. Respondents oversaw an average of 22 hotels each, which ranged across five continents. The majority of the properties represented were classified as Luxury/Upscale. Guidance based on contributors' responses includes common practices for pre-opening budgeting: development, timeline and oversight. Within the budget planning is a chart of top expenses by property class and labor costs, with details on hiring timelines and employee relocation benefits. In addition, the report offers pre-opening timelines for the selection, installation and training for hardware and software systems.
Download the full report from HFTP News at news.hftp.org.
Hospitality Financial and Technology Professionals (HFTP®) established in 1952, is an international, nonprofit association, headquartered in Austin, Texas, USA, with offices in Hong Kong, United Kingdom, the Netherlands and Dubai. HFTP is recognized as the spokes group for the finance and technology segments of the hospitality industry with members and stakeholders spanning across the globe. HFTP uniquely understands the industry's pressing issues and assists its stakeholders in finding solutions to their challenges more efficiently than any organization. It does this via its expert networks, research, certification programs, information resources and conferences/events such as HITEC. HFTP also owns the world's only hospitality-specific search engine, PineappleSearch.com. For more information about HFTP, email email@example.com or download the HFTP/HITEC media kit via the HFTP website. Read industry updates on the suite of HFTP hospitality news sites: HITEC Bytes, Club Bytes, Finance Bytes and HFTP News.
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