Assignment On Understanding Hotel Finances

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Assignment On Understanding Hotel Finances

Table of Contents

Part 1- 3

Task 1. 3

Task 2. 9

Part 2. 13

References. 20

 

 

Part 1-

Task 1


Calculation for the year 2022 of the company Hotel Defeo

1. Hotel Occupancy Rate

Hotel Occupancy Rate

 

 

 

Total number of Room

75

Occupied Room

54

 

 

Formula= Occupied Room/Total number of room

Rate in (%)

72%

 

2. Average Daily Rate

Average Daily Rate

 

Amount (in £)

Weight*Amount

ADR =Total amount/Total room

 

 

 

 

 

Total Rooms

75

 

 

 

Suits

10

130

1300

 

Deluxe Rooms

15

120

1800

 

Twins / Double Rfooms

30

99.99

2999.7

 

Single Rooms

20

80

1600

 

 

 

 

7699.7

102.663

 

3. Revenue Per Day

Revenue Per Day (Based on Occ)

 

 

 

Total Number of room Occupied

54

ADR

102.66

 

 

Formula= Room Occupied* ADR

Amount (in £)

5543.78

 

4. Annual Revenue

Total Annual Revenue

Amount (in £)

Revenue Per Day (Based on Occ)

5543.784

Days

365

Formula= Revenue Per Days*365

 

2023481.16

 

Here, calculating the other ratios by using the above information of the company within the accounting of hotel:

 

5. Revenue Per Available Room

RevPAR

 

 

 

Total Rooms

75

Total Revenue

5543.78

 

 

Formula= Total Revenue/ Total Room

 

Amount (in £)

73.917

 

6. Gross Operating Profit Per Available Room (GOPPAR)

Particulars

 

Gross Operating Profit

1249698.67

Total Room

75

 

 

Available Room in the year

27375

 

 

Formula= GOP/ Available room in the year

Amount (in £)

45.65

 

The above financial calculation provide a range of various useful data that can help the company for understanding it performance and identify the weak as well as the improvement areas. The following are includes the various important factors of these quantatives figures as well also mentioning the various importance and relevance of the differences between all the above accounting information of the Hotel Defeo:

1. HOR- It measures the percentage of available rooms that are occupied at a specified period. From the above table of this particular rate of calculation depicted that the 72 % in the year of 2022was HOR, which indicates that on average, 54 out of 75 rooms were occupied each day. If the rate of occupancy is high, it means that the demand of the hotel is popular among travelers along this company financial performance is better during the accounting period and vice- versa (Soehardi, 2020, p.45).  This company rate of HOR is good sign for the hotel, which demonstrate that it is popular with guests and hotel is efficiently managing its consistent level of occupancy a specific period. According to industry benchmarks, the occupancy rate between 70 % and 75 % is considered a healthy target and the Hotel Defeo’s HOR falls within this range of limits.

2. Average Daily Rate- The hotel company calculate this rate for identifying the average rate charged per room per night. The rate help in the determining the rate of the hotel revenue per available room. The rate of ADR for the Hotel of Defeo’s was £102.66. This is important for the hotels for understanding the value proposition for guests and overall pricing strategy (Sanchez-Perez et al. 2019, p.85). The ADR is on the higher side, indicating that the hotel is targeting a more upscale market. On the other side if interpret this rate in the relation of the benchmark, then the hotel lies in the group of the mid-range hotel, it is around £120-£140.

3. Revenue per Day- It demonstrate the hotel’s earning revenue per occupied room in the particular hotel. The rate RPD after calculate to be £5543.78 and that figure indicates the amount of revenue generated per day by the hotel. It will help the hotel for understanding the financial health and profitability. The hotel Defeo is on higher side in this particular rate which is RPD, depicting that the company is earning a good amount of revenue from its hotel room in every day (Abrate et al. 2019, p.145).  This is a positive sign for the hotel along this it would demonstrating that it doing well in terms of performance of financial. According to the industry benchmark, the company is earning good amount of profits from its hotel rooms and it shows that the company is efficiently managing it all expenses and cost of hotel. In simple words, the higher will be the revenue in the company; it is good for the company expansion and its growth purpose.

4. Annual Revenue- As per the above table of calculation showing the AR was £2023481.16 in the accounting year 2022. This figure indicates the total sum of amount the Hotel Defeo earned or generated annually. It is significant for the hospitality industry to measure its performance for the end of accounting period. This will aid in the knowing the company in profit and loss during the financial year (Al-Wattar et al. 2019, p.58).  For calculating this, it would help in understanding the expenditure and revenue level of the Hotel Defeo. However, it is important to note that this figure is heavily influenced by the occupancy rate and ADR figures. It would also indicate the development and advancement in its operations and in the other activities.

5. Revenue per Available Room- It indicates the total amount the company is generating from it’s per available hotel room during the particular time. It is determined by multiplying the value of rate of average daily with the occupancy rate.  According to the above table provided information of this rate it was £73.91, it is higher than the industry average, which demonstrating that the ability of earning the revenue from its present rooms at the specified time (Hayes et al. 2021, p.70).  The higher the RevPAR is good for the hotel of Defeo which means that it has enough capacity to earn income and also reflecting the company management efficiency.  The average rate for the hotel of luxury varies from the £150-£200, while for a hotel industry of mid-range, it is around £60-£80.

6. Gross operating profit per available room- It measure the of hotel’s profitability per room available in the hotel. This is calculated by the dividing the gross operating profit by the total rooms of the year. The GOPPAR was £45.65 for the accounting year 2022. It provide the accounting information about the profitability per available room of the hotel. This rate is good sign for the company growth and also indicate that the Hotel Defeo is effectively managing its operating expenses during the period (Chen, 2019, p.135). Moreover, the rate of that particular ratio is higher form the industry standard rate which indicates the Hotel Defeo is efficiently managing its profitability and better control on cost and revenuer management. This could be attributed to the hotel strategic location, superior customer services and offer high quality of the product and services.

There are several factors can impact a hotel economic and financial performance which is includes the locations, political, seasonality, competition and conditions of economic. For instance, if the hotel is located in the tourist destination may experience high efforts of seasonality that affect the rates and demand of the hotel for a certain period. Additionally, when the hotel is situated in the urban areas would faces high level of competition, which can drive fall in the various rates such as the level of occupancy of the room, annual revenues and so on.

There are so many internal and external factors that would be influencing the decision making and behavior of organization. The pricing strategies, allocation of costs, policies, regulations and the most importantly the objectives of the firm which is including under the internal factors. On the other hand, the social, technology, season and political factor consist in the variables of external (Hayes et al. 2021, p.70). The state of the economy, including factors such as inflation, rates of unemployment, and Gross Domestic Product growth, can significantly affect hotel occupancy rates and average daily rates. The prices charged by nearby hotels and accommodation providers can influence the rates charged by a particular/ competitor hotel. The Hotel Defeo must crucial analyze the financial figures and performance for evaluating the drawbacks and factors that will be influencing the various ratio that is calculated above. Also, developing the different strategies that would mitigate their impacting factors and variables.

The differences between these ratios are also important to consider as they can reveal insights into the hotel's operations and performance. For example, if the hotel's occupancy rate is high, but its ADR is low, it could indicate that the hotel is not pricing its rooms effectively, or that it is facing intense competition. Similarly, if the higher hotel's RevPAR, and in the contrast the low GOPPAR, it could suggest that the hotel is incurring high operating expenditure, which are impacting its profitability (Chen, 2019, p.135). If the occupancy rate is low, but the ADR is high, it could suggest and indicates that the hotel is pricing itself too high for the current demand. It lead to lower revenue and the need to adjust pricing strategies or increase marketing efforts to attract more guests. Moreover, when the RevPAR and GOPPAR are both low, it indicate that the hotel is facing significant challenges, such as low demand, high operating costs, or poor marketing efforts. The hotel may need to evaluate its operations and make significantly increase its profitability and performances.

 

 

Task 2

Hotel Defeo

 

 

Amount (in £)

 

 

 

 

Room In Hotel

75

 

 

Average Occupancy

54

 

 

Hotel Occupancy Rate

72%

 

 

Average Daily Rate

102.66

 

 

Revenue Per Day (Based on Occ)

5543.784

 

 

Total Annual Revenue

2023481.16

RevPAR

73.92

Gross Operating Profit (GOP)

1249698.67

GOPPAR

45.65

 

RevPAR Index for the Hotel Defeo and its competitors

Company Name

Total Room

Total Revenue (in £)

RevPAR (in £)

RevPAR Index (in %)

Hotel Defeo

75

5543.78

415783.8

13.73

Grand Lodge

90

9210

828900

27.37

Osborne Manor

120

10034

1204080

39.76

Three Cliffs Guest House

80

7246

579680

19.14

Total

365

32033.784

3028443.8

100

 

From the RevPAR index, it can be seen that Hotel Defeo has the lowest index which was 13 % as compared to its competitors such as Grand Lodge, Three Cliffs Guest House and Osborne Manor. It is indicating that the firm are earning low revenues in the financial period of 2022 on it’s per available room. In the term of the financial management that demonstrate that the Hotel Defeo is performing bad as compared its competitors. However, it is important to note that the RevPAR index alone may not provide a complete picture of hotels market share, and other factors such as the satisfaction level of its customers, goodwill and location of the hotel should also be taken into consideration (Demydyuk, 2021, p 43). Additionally, this metric figures does not take into factor of account such as operations and margins of profits. Therefore, while useful, it is significant to use multiple metric when evaluating a hotel’s financial performance.

It is used by the hospitality industry to evaluate the hotel financial performance. It is measure of a hotel performance relative to its competitors of the same industry. It gives insight into how well a hospitality company is capturing its fair share of the market (Sahin, 2022, p.83).  For example, if a hotel has a RevPAR index of 100 %, it means that the company share the same level of market as its competitors. If the percentage of this index is more than 100 %, it indicates the hotel is outperforming as compared to its rivalry enterprises and vice- versa.

In the above table, it is shown that the index of the revenue per available room demonstrate that the Hotel Defeo has a 13.73% which means that it cover and controls 13.73 % of the market share which suggest that there may be room for improvement in its strategy of management of revenue (Pucci and Seraphim 2019, p.12) On the other hand, Osborne Manor, Grand Lodge and Three Cliffs Guest House index of RevPAR was 39.76 %, 27.37 % and 19.14 % respectively. This critical analysis indicates the Osborne and Grand Lodge market share are higher that form the other industry of the same sector (Hospitality).  

According to the financial management it is important to determine because it provides a metric for assessing a hotel profitability and income during the financial year. This quantatives information are important for the company for analyzing and evaluating its strength and weakness department / areas that would help in the increasing the profits and the activities which lead to added more amount in the cost of the hotel operations (Hammer, 2019, p. 74). It will help in setting the strategies of pricing and identifying opportunities for expansion. Furthermore, this data can be used to inform promotional and marketing efforts, by this it will also highlighting the several areas of Hotel Defeo’s strength to potential customers. By analyzing RevPAR index of different hotels over time because it will help to identify pattern and trends in the market and make regulation or strategies decision accordingly (Demydyuk, 2021, p.43).  If this trend is declining, it may suggest that it demand slowdown in the upcoming years, it provide the hotel management may need to adjust its marketing and pricing strategies to attract more customers.

To strengthen the use of these strengthen the analysis of industry and standard hotel metrics, the following concepts could be introduced:

  • Ancillary revenue refers to the additional revenue streams beyond room revenue, such as food and beverage sales, spa services, or conference and event bookings (Hammer, 2019, p.74). Incorporating that revenue into the analysis of hotel figures provides a more comprehensive understanding of a hotel's performance in the respect of the economic and financial.
  • Total revenue management is an approach that maximizes all revenue streams across a hotel's company various departments, such as rooms, and events, to optimize overall profitability (Phan et al. 2021, p.146). This concept emphasizes the importance of balancing average daily rate, occupancy rates, and ancillary revenue to increase the revenue.
  • Segmenting the market, hotel managers can identify which guest segments are generating the most revenue and adjust pricing strategies accordingly. For example, a hotel may find that business travelers are willing to pay more for amenities like free Wi-Fi and late check-out, while leisure travelers prioritize location and price.
  •  Forecasting occupancy, ADR, and RevPAR, hotel managers can better plan for inventory, staffing, and marketing costs (Abrate et al. 2019, p.145). This helps to ensure that the hotel is maximizing revenue during peak periods while decreasing expenses during slower periods.
  • Understanding the cost of acquiring a new customers or guest is important to ensure that the hotel's expenses of distribution and marketing are effective. This includes knowing the cost of online travel agency commissions, and loyalty program costs.


However, there are some limitations to these industry standard hospitality metrics. These includes:

  • The different companies used the variation in accounting methods or techniques in their firm for maintaining its accounting books which can impact the comparability and accuracy of monetary figures at a particular period.
  • It is includes only the quantatives data for evaluating the rates of ADR, RevPAR and other ratios and rates (Phan et al. 2021, p.146).  It is ignoring the qualitative factors such as the place, preferences of customers, and employment engagement.
  • The another important limitation it is external factors including weather pattern, event of social and political, economy does not assumed and consisted during the calculating process of the various rates that would helped in the critically analyzing the financial metrics and performances.

 

 

Part 2

Critical analysis of the financial health of a Hotel

The financial analysis is an important function of the organization because it provides significant information about the company such as the economy, lenders, dealers and management which will be used by the managers for the various domains for managing its operations and efficiently achieving the company objectives as well the various department. The company accountant has recorded all the significant monetary transactions that will impact the decision-making process of the various investors and firms (Ali et al. 2018, p.49). The financial statement analysis report of the company does not only provide data about the financial health and conditions, rather than it will give information about the profitability, ability to pay its obligation as well ability to earn revenues, and creditworthiness. Additionally, it gives the financial figures about the internal and external operation of the company at a particular period.


Financial performances of Hotel Defeo

There are three financial statements is used by the firm for evaluating its performances including the statement of income report, financial position, and cash flow statement. Here, are the income statement and various ratios of a hotel of Defeo such as hotel occupancy rate, ADR, annual revenue, and RPD. Furthermore, the accountant who calculates these financial metrics also evaluates the GOPPAR and revenue per available or total room (Ariffin and Maghzi, 2019, p. 26). The above report also includes the RevPAR index which shows the company's market share in the particular year 2022 as compared to its three competitors in a specified year.

As per the above critical analysis of the company financial metrics of the hotel of Defeo, it is demonstrated that the financial position is not much better as compared to the rival industry. The operating revenue of the company increased in the accounting period 2022 by £591130.21. This revenue head includes the rooms, foods and beverages, other operated departments, and miscellaneous income (Ariffin and Maghzi, 2019, p.26). According to the provided information of the income statement of Hotel Defeo, it is interpreted that around 1% of the income of the previously mentioned heads' revenue increased in the current year. The change in the figure of the revenue is not more, it would demonstrate that hotel managers are working efficiently during the period.

The other items of the profit and loss account are department expenses, which was £ 1089185.38 and £ 1325854.67 in the year 2021 and 2022 respectively. The most money spent by the Defeo was on beverage and food products which were £ 731276.33 (2022) and £ 621584.88 (2021). In other words, the percentage of the expenses are the same in both accounting period, which was a good sign because that would indicate that the hotel's current strategies and regulation for controlling the expenditures are best.

The profit of the operating in the year 2022 was £ 1839127.67, and it increased by only 0.4 % as the previous figure. The gross profit of the hotel was 39.5%, management fees were 3.0 and it is decreased in the current period by 0.4%. Furthermore, the total income of the Defeo hotel is increased by 0.8% in 2022. The total non-operating income and expenses (NOIE) were £ 126492.57 and £ 180.703.67 in the respective accounting year 2021 and 2022. 

The hotel occupancy rate of hotel Defeo was 72 % and its competitor rate is between 78% to 83 %, only three hospitality industry percentage is compared to that mentioned in part 1. The annual income of the main hospitality industry is less than and it was £2023481.16 as compare to competitor firms. Additionally, the RevPAR and GOPPAR ratio was £102.66 and £45.65 respectively in one the financial year 2022 (Baarsma and Wallenburg, 2018, p.72). This previous rate is lower than other hotel industries which means the company faces challenges to attain its objectives and aims by efficiently controlling its hotel activities and optimum allocation of scare resources along with this the working employees are performing their duties not efficiently.

Hotel financial management is a critical aspect of the industry of hospitality because it ensures the financial health of the hotel. There are different approaches to the financial management of the hotel and each item of finance plays a vital role in maintaining financial stability. In a competitive hospitability company, the hotel must have effective control over its activities to stay profitable and grow its business (Baarsma and Wallenburg, 2018, p.72). This process helps the industry managers to identify key areas for improvement and take significant steps or action to increase the revenue and profitability of the company. In this section, discuss the five approaches to the management of finance, their importance, and how they have evolved. Moreover, these tools also provide a means to analyze past performance, forecast future trends and adjust the budget accordingly.

 

1. Analysis of Costs:

It is an essential aspect and function of the financial management department of the hotel for evaluating and identifying the total expenses that will arise in the upcoming financial years or have already been incurred by the hotel. There are four main types of costs such as indirect, direct, variable, and fixed. The direct cost includes those expenses that are related to the production of services and products such as raw materials and wages (Choi et al. 2021, p.86).  Indirect cost refers to that expenses that help the main task and are necessary for the company for the business operations such as administrative, rent, and utilities. On the other hand, the fixed cost of the company does not change with time regardless of the increase and decrease in the total production of the product and services. In contrast, the cost of variable changes and varies according to the total manufacturing of the hotel at a given period of time.

In the past, hotel managers may have focused more on the cost of fixed such as electricity cost, and rent, but with the changing customer demands and increasing competition in the market, analyzing the expense of variables has become more critical. It is important for the hotel industry to must identify and manage variable costs, such as labor, cost of food and supplies, and other costs to maintain sustainability and profitability (Dolenko and Khamitova, 2019, p.58). It will help in reducing or eliminating the various expenses that would lead to increasing product and service costs. In the previous period, it is difficult for the hotel to use manual systems to track costs or expenses which were time-consuming along with this, it is prone to errors.

However, with the advent of technology, the financial manager used the automated system to track and analyze real-time expenses, which is the more accurate and efficient result and generates reports. Technology has also enabled the hotel to automate scheduling and timekeeping systems and the most important reason is to manage the variable costs. (Choi et al. 2021, p.146). For instance, Hilton Hotel uses a system of integrated cost management that facilitates tracking and monitoring hotel costs across its properties worldwide and this will also help in the identification of the areas where costs can be reduced. In contrast, Osborne Manor, a small boutique hotel in the UK, has received negative reviews due to poor customer service offered and it affects the company revenues. The Hotel of Ritz-Carlton applied for this food cost management program in their hotel operation which would lead in the saved over $4 million annually.

In the future, with a growing emphasis on sustainability and responsible tourism, the hotel may focus more on decreasing indirect costs such as waste materials (Kim and Kim 2019, p.08). Some hotels in the UK implemented energy-efficient practices such as using renewable energy sources for reducing their impact of environmental and cut costs.


2. Ways to increase revenue

 It is another critical concept of financial management. Increasing room rates, offering additional services and upselling are some examples of maximizing revenues. The key area for the hotel industry to manage its RevPAR is because it provides information about the total revenue earned from all available rooms (Duman and Mattila 2019, p.33).

Previously, hotels rely on increasing occupancy rates to increase profit/ revenue, but with the rising online booking platform and increasing competition, the industry of hospitality focus on maximizing the revenue per available ratio. For example, Worldwide implemented a system of cost and revenue management that would increase the ratio by 5.4 % in 2019. For instance, Grand Lodge, a luxury hotel in the US, offers personalized services to its guests, which has led to positive reviews and repeat business. In contrast, Three Cliffs Guest House, a budget hotel in the UK, has received poor and bad reviews about its poor service the reason for the company's revenue as compared to Hotel Defeo.

After using the improved technology and various software that would help in the recording and managing of all the types of information of the hotel. The firm uses an online platform for booking hotel rooms and apartments which helps the company to earn more profits after using these management strategies to help in increasing Hotel Defeo RevPAR was £102.66 in the year 2022 (Franke et al. 2018, p.98). Social media marketing has also become an essential tool for hotels to attract new customers and promote their existing and new products and services.

For future growth, the hotel must improve and focus on personalization and providing unique products along these sharing unique experiences to increase the hotel revenue. Currently, some hospitality company offers customized and personalized room amenities and services respectively such as wellness programs and personal trainers programs, to attract more customers.


3. Hotel Management Agreements

 HMAs are essential for ensuring the hotel profitability and success of the hospitality industry. It refers to the legal contract between the company management and hotel owners that outlines the management fees, duties, responsibility, and sharing agreement of profit or loss of the hotel.

It has been more favorable towards the management of the company, with hotel proprietors receiving lower revenue/ profit and having less control over the business operation of the hotel. However, the increasing competition level between the various hospitability industry along with the changing economic and market circumstances (Fyuall et al. 2018, p.41). It is a benefit for the hotel owner because it provided detailed information about the hotel activities, expenses, and revenue activities. It will also aid in finding the various activities that increase the cost of the total products. In other words, these management strategies provide information about the employees and managers' duties and responsibilities in the hotel. Hilton Hotels has management agreements with various hotel owners worldwide, allowing it to manage properties that it does not own. In contrast, Osborne Manor is independently owned and managed, without an HMA, limiting its access to management expertise and resources.

It is more complex and detailed, with a greater emphasis on transparency and accountability. There are some industry now includes joint investments and risk sharing between the two parties who are ready to enter this agreement. From the hotel sustainability point of view, the hospitability enterprise needs to focus on the business and services related to tourism. For sustainable tourism, some hotels implement eco-friendly and start an agreement with their local communities for their hotel promotions. HMAs may include various new provisions for responsible practices of tourism and continuous development goals.


4. Monthly Financial Statements

It provides an overview of the company's financial performance, and identifies the strength and weakness areas for the particular period. It is prepared by the financial accountant every month for critical analysis of the financial figures of the hotel. It gives the report help in calculating the various accounting ratios and helps in finding departments that require attention (Han and Hyun, 2019, p.88). The financial statement includes information about the revenues, liquidity, profitability, expenditures, assets, and liabilities for a specified period.

It is difficult sometime to prepare the monthly report because of incomplete information, less detailed, and less frequent in the past. Some entries are incurred current month it is difficult for the manager to analyze the category of accounts and when they record in the books of accounts. Due to changing the market and objectives of the departments/ hotel required more information while preparing the statements (Heo and Lee, 2021, p.23). In the previous period, it is difficult to manage and record all the economic transactions of the company. Some hotels now prepare weekly or even daily financial statements to monitor their performances and identify potential issues.

The hospitability industry prepares that statement for measuring its monthly performance in terms of finances. The Grand Lodge Hotel uses a simple bookkeeping system to prepare the accounting book during the financial period that the company chooses which would lead the limiting its access to real-time financial figures (Heo and Lee, 2021, p.23). On the other side, Hotel Defeo used advanced software technology that helped in the real-time preparation of various accounting information for the purpose of increasing its revenues.

To date, updated technology and software have played a significant role in preparing monthly financial reports. Various hotel use software programs to generate a statement of financial and analyze monetary data (Kim and Jang 2021, p.65) Cloud-based software of accounting has made it will easier for hotel managers to access financial data from anywhere and collaborate with other stakeholders. In the future, it would become more integrated with other aspects of hotel management, such as the service of clients and revenue and cost management (Jiang et al. 2020, p.56). Hotels used data analytics and artificial intelligence to generate current-time financial reports and make data-driven decisions. 


5) Payroll

Another important activity of the financial department is to manage all the payrolls during the period of accounting. It includes all the significant expenses for hotels, and it drastically impacts the revenue and profitability position of the hotel. This financial management analysis of all the business operations and identify all the additional factors that would lead to the increase the manufacturing services and product costs (Kim and Jang, 2021, p.35).  It mainly considers all the employee and human resources expenses such as salaries and commissions paid by the hotel for its services.

Managing payroll requires careful attention to detail, including tracking employee hours. Furthermore, it includes the various benefits and provision which is paid and provided by the hospitality companies to their staff and employees (Lim and Lee, 2021, p.56). In the past years when no software was developed, then the employment cost of the company was higher. The company considers human resources as important assets of the company because they manage all the operations.

Currently, the Hotel Defeo is using different types of software for managing and recording the payroll schedule, managing benefits, automating payroll processing, and tracking employees' hours. This approach reduces the risk of errors and mistakes along this will make it easier to document through the cloud-based software in the financing department and teams to manage and control payroll (Lim and Lee, 2021, p.148). As a result, financial management in hotels has evolved to include a more strategic approach that focuses on revenue management, customer value, and cost optimization.

In conclusion, hotel financial management is a critical aspect of hotel operations that requires effective planning, monitoring, and control of financial resources. Some other tools such as budgeting, forecasting, and cost analysis are significant for ensuring the financial health of a hotel. With technological advancements, hotels can now leverage the management of financial software to automate and streamline their financial processes. By using real-world examples such as Osborne Manor, Grand Lodge, and Three Cliffs Guest House, it is clear that there are different approaches to HFM, each with its benefits and limitations. Ultimately, hotels must adopt an integrated approach that aligns with their business objectives and allows them to optimize their financial resources.

 

 

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