News for the Hospitality Executive |
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Lessons from the Field
A Common Sense Approach to Success in the Hospitality Industry |
By Dr. John Hogan, CHA MHS CHE, April 1,2009 |
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�A Bakers Dozen� of Strategies for Hotel Controllers
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By Dr. John Hogan CHE CHA MHS
April 15, 2009 �Getting your house in order and reducing the confusion
gives you more control
While Larry King is better known in the media and entertainment world rather than hospitality, an internet search on him shows the extreme successes and failures that he has faced in his career. Those extremes parallel many of the swings in revenues and profits for hotels of all sizes, locations, brands and ownership. This is another segment of the Bakers Dozen of Strategies series and focuses on hotel controllers. There is an enormous range of responsibilities for financial controls in today�s hotels and much of this depends on the type and size of hotel property. A facility that has gaming, banquet facilities and extensive public space has very different needs than a smaller rooms only hotel. A four or five star upscale property has different client needs than a property serving youth groups. All hotels need someone to act as the financial manager of the hotel, and there can be a danger and a liability if the General Manager has to be the one who handles all facets of the operation. Controllers are usually the one responsible for short and long term planning, as well as daily operations of the accounting department. In larger organizations, s/he interacts with some regularity with the brand or management company Vice President(s) and Corporate Controller. They may deal with accounting transactions or control practices not specifically addressed in the acceptable company accounting policies and procedures manual or which requires interpretation. In smaller hotels, the role of Hotel Controller may be handled by a 3rd party who may or may not be at the physical building each day. Many ownership groups use a cluster approach on this function, and have only very basic financial activities at the hotel level with all reconciliations and filings done by the owner�s office or an accountant. Management companies often successfully use this approach. With that as an introduction, the following �Bakers Dozen� of Strategies for Hotel Controllers can be considered in either approach. 1. Take the lead on establishing and administering all financial systems and internal controls. This includes an approved and complete plan for overall financial checks and balances for control of operations. In the case of high volume food and beverage, gaming, retail or other revenue centers, this is critical to cash flow management. Most hotels use approved industry standard accounting systems and formats.
Please share an idea for a column or contact me regarding consulting, customized workshops or speaking engagements at [email protected] anytime. Autographed copies of LESSONS FROM THE FIELD � a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES can be obtained from THE ROOMS CHRONICLE www.roomschronicle.com and other industry sources. All rights reserved by John Hogan and this column may be included in an upcoming book on hotel management. The opinions expressed in this article are those of the author and do not necessarily reflect the views of this publication John Hogan, a career hotelier and educator, is frequently invited to participate at franchise meetings, management company and hospitality association industry events. He is a successful senior executive with a record of accomplishment in leading hospitality industry organizations at multiple levels, with demonstrated competencies as a strong leader, relationship builder, problem solver and mentor. He conducts mystery-shopping reviews of quality in operations and marketing, including repositioning of hotels. He writes weekly columns for a number of global online services (hotel online.com, eHotelier, 4 Hotels, Hotel Resource, etc) and has published more than 400 articles & columns on the hotel industry. He co-authored (with Howard Feiertag, CHA CMP) LESSONS FROM THE FIELD � a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES, which is available from [email protected], ROOMS CHRONICLE www.roomschronicle.com and other industry sources. He resides in Phoenix, Arizona and expects to publish in 2009 his 2nd book based on his dissertation � The Top 100 People of All Time Who Most Dramatically Affected the Hotel Industry. Hogan�s professional experience includes over 35 years in hotel operations, food & beverage, sales & marketing, training, management development and asset management on both a single and multi-property basis, including service as Senior Vice President of Operations in a specialty hotel brand for six years. He holds a number of industry certifications (CHA, CHE, MHS, ACI) and is a past recipient of the American Hotel & Lodging Association�s Pearson Award for Excellence in Lodging Journalism, as well as operational and marketing awards from international brands. He has served as President of both city and state hotel associations. John�s background includes teaching college level courses as an adjunct professor at three different colleges and universities over a 20-year period, while managing with Sheraton, Hilton, Omni and independent hotels. He was the principal in an independent training & consulting group for more than 12 years serving associations, management groups, convention & visitors� bureaus, academic institutions and as an expert witness. He joined Best Western International in spring of 2000, where over the next 8 years he created and developed a blended learning system as the Director of Education & Cultural Diversity for the world�s largest hotel chain. He has served on several industry boards that deal with education and/or cultural diversity and as brand liaison to the NAACP and the Asian American Hotel Owners� Association with his long-term involvement in the Certified Hotel Owner program. He has conducted an estimated 3,200 workshops and classes in his career. Expertise and Research Interest
Service to the Industry and Hospitality Education includes working with the Educational Institute Certification Commission of the AH&LA, the Hospitality Industry Diversity Institute, the AH&LA Multicultural Advisory Council, the Accreditation Commission for Programs in Hospitality Administration, the Commission for Accreditation on Hospitality Management Programs, the AH&LA and AAHOA Education and Training Committees, the Council of Hotel, Restaurant and Institutional Educators (CHRIE), the International Hotel Show and the Certified Hotel Owner program for the Asian American Hotel Owners� Association. |
Contact:
Dr. John Hogan, CHA MHS CHE
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