What is the definition of Profit and Loss Statement in the hotel industry?
Profit and Loss Statement can be shortened to P&L. It is a economic report, recognized on a permanent period of time (from the 1st of January until the 30th of June for instance).
This manuscript lists the totals for revenues, expenses and profits of each division inside the hotel. In the revenues, you will find rooms revenues, F&B revenues, conferences and events revenues, telephone revenues, spa and health club revenues, parking revenues and other revenues. In the profits, it includes the revenues stated above, less the expenses of each section. In the expenses, you will find all the departments that do not produce any straight revenue, such as marketing, accounting, energy costs, etc.
There are two types of P&L statements: the combined one and the department one. The combined P&L is used to account and calculate the financial presentation of the concern, by revenue centres, profit centres and expenses centres. The department P&L is used as an administration tool to offer to managers information, which they can use to function their department.