What is the meaning / definition of Profit and Loss Statement in the industry?

Profit and Loss Statement can be abbreviated to P&L. It is a financial report, established on a fixed period of time (from the 1st of January until the 30th of June for example).

This document lists the totals for revenues, expenses and profits of each department within the hotel. In the revenues, you will find rooms revenues, F&B revenues, and events revenues, telephone revenues, and health club revenues, parking revenues and other income. In the profits, it includes the revenues mentioned above, less the expenses of each department. In the expenses, you will find all the departments that do not generate any direct revenue, such as marketing, accounting, energy costs, etc.

There are two types of statements: the consolidated one and the department one. The consolidated P&L is used to and measure the financial performance of the establishment, by centres, profit centres and expenses centres. The department is used as a management tool to provide to managers information, which they can use to operate their department.

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