A new HFTP study entitled "Pre-Opening Expenditures in Hospitality" by authors Agnes DeFranco, Ed.D., CHAE and Arlene Ramirez, MBA, CHAE, CHE, CHIA of the Conrad N Hilton College, University of Houston, and Tanya Venegas, MBA, MHM, CHIA, director of customer success at HotStats, investigates pre-opening budget timelines and procedures in the hospitality industry. Commissioned by Hospitality Financial and Technology Professionals (HFTP®), the study aims to clarify understanding of the optimal pre-opening processes and components across hotels of a variety of types, sizes and geographic locations.

"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.

About HFTP

Hospitality Financial and Technology Professionals (HFTP®), established in 1952, is a hospitality nonprofit association headquartered in Austin, Texas USA with offices in the EU and Middle East. HFTP is recognized as the spokes group for the finance and technology segments of the hospitality industry with an international network of members and stakeholders. HFTP uniquely understands the industry's pressing issues, and assists its stakeholders in finding solutions to their challenges more efficiently than any organization. HFTP offers expert networks, educational resources, career development programs, research, leadership opportunities and conferences and events. HFTP produces international events throughout the year, including the world's largest hospitality technology tradeshow and conference brand: HITEC. In addition, it oversees the hospitality-specific Pineapplesearch.com® and the Uniform System of Accounts for the Lodging Industry (USALI). For more information about HFTP, visit www.hftp.org. For the latest news, visit the HFTP News page at news.hftp.org and the HFTP Connect blog at blog.hftp.org.

Eliza Selig
Staff VP, Marketing and Communications
+1 512 220 4026
HFTP