Hospitality Financial Leadership – Why is Hotel Accounting Different?
Hospitality Financial Leadership – Why is Hotel Accounting Different? — By David Lund

David Lund · 17 Jan

I heard this about 40 years ago and it has stuck with me. I was a newbie cocktail waiter working part time in my hometown hotel. One of my regular weekend customers was the controller and he was telling me he needed an income auditor for the summer line-up. I suggested my brother who was recently out of work at his articling job at a CA firm.

Hospitality Financial Leadership – Top 10 List for Controlling Labor Costs
Hospitality Financial Leadership – Top 10 List for Controlling Labor Costs — By David Lund

David Lund · 22 Nov

Managing labor costs is a never-ending battle in any hotel. No wonder it adds up to on average 50 percent of the total revenue in hotels around the world. To say labor cost is important is an understatement so in this piece, I will highlight the key controls and features to make sure you are on the right track with this all-important aspect of hospitality.

Hospitality Financial Leadership – How Can You Turn $250 Savings into $1 Million in Asset Value
Hospitality Financial Leadership – How Can You Turn $250 Savings into $1 Million in Asset Value — By David Lund

David Lund · 9 Nov

That’s right, your eyes and the headline are not fooling you. I learned this from a client in a backwards kind of way and now I want to share it with you. It is a powerful way to justify and prove a return on investment (ROI) for financial leadership training. I use this story as well to show my clients what they are leaving on table in the way of profits and asset value if they are not using financial leadership in their hotel.

Hospitality Financial Leadership - The ROI for Financial Leadership Skills
Hospitality Financial Leadership - The ROI for Financial Leadership Skills — By David Lund

David Lund · 1 Nov

When it comes to investing in oneself many times people overlook the outcome and instead concentrate on the up-front cost. When we look at the opportunity to improve our own personal prosperity, we need to see the full picture. We need to realize in life we have a window that opens and closes on our career and its fortunes. It reminds me of a line from Shakespeare:

Hospitality Financial Leadership - New Deal Between Hotel Owners and Brands that Manage Hotels
Hospitality Financial Leadership - New Deal Between Hotel Owners and Brands that Manage Hotels — By David Lund

David Lund · 25 Oct

A lot has been speculated about what could and should change because of the pandemic. There is one aspect of the hotel business that desperately needs to change and the Covid crisis is not to blame. However, it will most certainly speed things up.

Hospitality Financial Leadership – Money Never Looks After Itself
Hospitality Financial Leadership – Money Never Looks After Itself — By David Lund

David Lund · 11 Oct

I do not know about your experience, but for me growing up in the hotel world, and especially my first decade working in F&B and rooms, the adage, “Look after the guests and the money will look after itself,” was literally beat into my head.

Hospitality Financial Leadership – Critical Importance of Accruals and Deferrals
Hospitality Financial Leadership – Critical Importance of Accruals and Deferrals — By David Lund

David Lund · 30 Aug

A lot gets written about certain things in the hotel industry and others not so much as a mention. I am not saying it is simply a matter of blatant favoritism or anything like that but it is not lost on me that certain items get the limelight. In this piece, I am going to shine a light on two of the hotel team’s third-line mainstays. This pair keeps us on track month after month and they need a little more respect.

Hospitality Financial Leadership – GOPPAR Characteristics
Hospitality Financial Leadership – GOPPAR Characteristics — By David Lund

David Lund · 26 Jul

From time immemorial, revenue per available room, or RevPAR, has been the go-to key performance indicator in the hotel industry. A simple calculation of average daily rate and occupancy rate, it is often thought of as the barometer of health for a hotel by those who work in the industry and those who make a living analyzing it.

Hospitality Financial Leadership – How To Prepare The Annual Budget In 1 Hour
Hospitality Financial Leadership – How To Prepare The Annual Budget In 1 Hour — By David Lund

David Lund · 12 Jul

Over the many years I have worked in hotels, I have had the pleasure of working with some exceptionally fine and talented individuals. This story is about one GM and his penchant for simplicity.

Hospitality Financial Leadership – Moving (Part 3)
Hospitality Financial Leadership – Moving (Part 3) — By David Lund

David Lund · 11 Jun

In the hotel business if you want to get ahead you better be ready to move. It’s the way in which you can multiply your opportunities and increase your chance for greater personal prosperity. That’s the way it was explained to me many years ago and it has certainly been my experience. On the flip side, moving is not easy and it can take its toll on you and the people in your relationships.

Hospitality Financial Leadership – Moving (Part 2)
Hospitality Financial Leadership – Moving (Part 2) — By David Lund

The Hotel Financial Coach · 7 Jun

In the hotel business if you want to get ahead you better be ready to move. It’s the way in which you can multiply your opportunities and increase your chance for greater personal prosperity. That’s the way it was explained to me many years ago and it has certainly been my experience. On the flip side, moving is not easy and it can take its toll on you and the people in your relationships.

Hospitality Financial Leadership – How To Create An Accounting Policy Manual
Hospitality Financial Leadership – How To Create An Accounting Policy Manual — By David Lund

The Hotel Financial Coach · 26 May

After recently completing a policy manual for a client, I want to share what worked for this hotel company and what could work for you. I also want to clear the air on policy vs. procedure.

Hospitality Financial Leadership – The System To Follow To Create Financial Leadership In Your Hotel
Hospitality Financial Leadership – The System To Follow To Create Financial Leadership In Your Hotel — By David Lund

The Hotel Financial Coach · 3 May

Practice is what we are missing. Practice with the financial piece is somehow a foreign concept. But in the hotel world practice is everywhere, right?

Hospitality Financial Leadership The Daily Revenue Audit – The Must Do’s
Hospitality Financial Leadership The Daily Revenue Audit – The Must Do’s — By David Lund

The Hotel Financial Coach · 19 Apr

The hotel business is a retail business and in order to stay on top of your business, you must fully and completely balance your daily revenues and settlements. This means dotting the eyes and crossing the Ts, examine them. Every day we begin anew and every day is a story unto itself when it comes to the revenues and settlements. I may sound like I'm repeating "revenues and settlements," but it cannot be emphasized enough.

Hospitality Financial Leadership – Disco Dick Hatfield
Hospitality Financial Leadership – Disco Dick Hatfield — By David Lund

The Hotel Financial Coach · 8 Mar

My hometown is St Andrews, New Brunswick in eastern Canada. The town overlooks Passamaquoddy Bay and to the south we are flanked by the great state of Maine. Every year in this part of the world the US governors and the Canadian provincial premiers get together for bilateral talks, some good food, and fun. This story is about one of those meetings, The Algonquin Hotel, and how I met our then Premier, Richard Hatfield who is partially responsible for my hotel career.

Financial Leadership in the Hospitality Industry – By Guest Author – Amber Habing
Financial Leadership in the Hospitality Industry – By Guest Author – Amber Habing — By David Lund

The Hotel Financial Coach · 1 Mar

This post will tell you about financial leadership in the hospitality industry. It is a summation of information from her research thesis at the Hotel Management School of Maastricht in The Netherlands. The aim of this research is to provide hoteliers with tools to improve their hotel's financial performance with effective financial leadership.

Hospitality Financial Leadership – What’s Possible in the Future with Hotel Financial Statements
Hospitality Financial Leadership – What’s Possible in the Future with Hotel Financial Statements — By David Lund

The Hotel Financial Coach · 18 Jan

I am a big fan of the Uniformed System of Accounts for the Lodging Industry (USALI), or as she is affectionately called "You Sally." It has been the guide that our industry uses to properly present financial information for a long…long time, in fact almost 100 years. It lays out the format for our financial statement presentation and essentially acts as a referee if you like, to tell us what goes where. What revenues, costs of goods, expenses, and payroll belong to which department.

Hospitality Financial Leadership – The Top 7 Front Office Controls
Hospitality Financial Leadership – The Top 7 Front Office Controls — By David Lund

The Hotel Financial Coach · 28 Dec

As you know the front office is the command post for your operation, and it's also the point where all the receipts come through. Making sure you have solid internal controls at the desk is not only good business, it's mission-critical. Without these safeguards you are wide open and as someone once said, good internal controls help keep honest people honest. Now don't get me wrong. I believe we need to trust the people we have on our teams, and I also have seen what can happen when there is an opportunity. So, this piece is about eliminating most of those weaknesses at the front desk.

What Exactly Are Owners Looking For From Their GM’s When It Comes To The Operational Finances?
What Exactly Are Owners Looking For From Their GM’s When It Comes To The Operational Finances? — By David Lund

The Hotel Financial Coach · 14 Dec

In this hard-hitting interview, you will learn what to tell your owner about how you're going to successfully manage their asset. What are the leadership strategies you will use to generate a superior return on their investment? How will you show up as the number one and instill confidence and lead your team around the money piece? If you're looking for the silver lining in all that is COVID in the hotel industry right now and getting your aspiring career back on track, then you are not going to want to miss this one.

Hospitality Financial Leadership - A Boring Routine Secretly Equals Power
Hospitality Financial Leadership - A Boring Routine Secretly Equals Power — By David Lund

The Hotel Financial Coach · 7 Dec

If you wish you could do more each day and you're open to looking at things differently, to consider there may be a stronger system to follow, perhaps this one is for you. Also, if you're a big fan of multi-tasking then YOU HAVE TO read this.

Hospitality Financial Leadership – A Bit About “You Sally”
Hospitality Financial Leadership – A Bit About “You Sally” — By David Lund

The Hotel Financial Coach · 30 Nov

By someone's estimate there are roughly one million hotels in the world. I take it that number includes all the different kinds of hotels from small inns and hostels all the way up to your full-service multi-outlet mega hotel operations. For simple math I am going to estimate that half of this number of hotels fall into the small inns and hostels, and that leaves 500,000 of what I'm going to call real hotels.

Hospitality Financial Leadership - Moving (Part 1)
Hospitality Financial Leadership - Moving (Part 1) — By David Lund

The Hotel Financial Coach · 23 Nov

In the hotel business if you want to get ahead you better be ready to move. It's the way in which you can multiply your opportunities and increase your chance for greater personal prosperity. That's the way it was explained to me many years ago and it has certainly been my experience. On the flip side, moving is not easy and it can take its toll on you and the people in your relationships.

Hospitality Financial Leadership – EFTEs, Productivity Measurements – Why Use Both
Hospitality Financial Leadership – EFTEs, Productivity Measurements – Why Use Both — By David Lund

The Hotel Financial Coach · 19 Oct

Most hotels measure payroll as a percentage of revenue or, as it is commonly referred to, labor cost percentage. This is not helpful. Why, you ask? Well, first of all, if sales magically increase because of an increase in the average room rate or average cover, your labor cost will automatically improve. Did anyone actually do anything better with the payroll? No. Or, if there is an increase in wages due to an outside force like the minimum wage increased, then your labor cost will suffer and did anyone actually do anything negative? No. So you see the limitations of labor cost percentage.

Hospitality Financial Leadership – Internal Control Reviews
Hospitality Financial Leadership – Internal Control Reviews — By David Lund

The Hotel Financial Coach · 5 Oct

Hot on the heels of creating a hotel policy manual is the newfound ability to create an internal control review process. Policies are all about the rules of the road and the ICR is all about the roadside check stop.

Hospitality Financial Leadership – Why Does it Take So Bloody Long to Do the Annual Hotel Budget?
Hospitality Financial Leadership – Why Does it Take So Bloody Long to Do the Annual Hotel Budget? — By David Lund

The Hotel Financial Coach · 7 Sep

Bloody is a great word. It's English and I'm Canadian so that's close enough and I'm adopting it for this piece. The word is so descriptive, and it immediately conjures up images of battle and of great suffering. Much the same as the annual carnage we refer to as budget season in the hotel business. It's the epic contest between line managers and executives, hotel leadership teams and the brand and hotels and their owners.

Hospitality Financial Leadership – What Everyone Needs to Know About Hotel Financial Skills 11-20
Hospitality Financial Leadership – What Everyone Needs to Know About Hotel Financial Skills 11-20 — By David Lund

The Hotel Financial Coach · 31 Aug

Regarding both the financial leader and the operationally managers roles: On the eve of starting my financial leadership course for the third year with Royal Roads University, I realized that most people have it somewhat wrong when it comes to how they think about the financials inside the hotel business. It occurred to me that most people think that a mechanic is the only person who can drive a car.