Performance and Financial Analysis of the Hotel - Case Study Example

The paper "Performance and Financial Analysis of the Hotel" is a perfect example of a finance and accounting case study. The report which examines the manner in which the hotel has performed over the last 3 years so that future strategies can be developed based on it highlights different areas which need to be worked on. The analysis thereby highlights the following

Total Hotel Revenue & Total Net Income: The analysis of the total revenue and net income shows the fluctuation in different months highlighting the fact that the number of tourists varies in each month which has an impact on the financial performance.

Rooms Department Revenues & Rooms Net Income: It is clearly identified that the business has been able to make profits in all the months from their room business showing that the hotels have a continuous guest and the business is stable from the perspective of room business.

Food & Beverage Department Revenue & Food & Beverage Net Income: It is clearly identified that the business has been able to make profits in all the months from their food and beverage business showing that the hotels have a continuous guest and the business is stable from the perspective of food and beverage business.

Return on Capital Employed: The analysis shows that the hotel has been able to ensure better returns on their investment as the year passes by as it has increased from being negative of -4.5% in year 1 to 15.4% in year 3.

Occupancy, Average Daily Rate & REVPAR: The analysis shows that occupancy rate, daily rates and REVPAR for the hotel have been continuously improving and have been contributing towards the growth of the hotel. It is clearly identified that the business has been able to that the hotels have good occupancy rates and have maximized the use of the fixed properly.

Refurbishment spending and an extra facility built: The analysis shows that refurbishment spending and building extra facilities for the hotel has been continuously changing and depends on the business that the hotel carried out. It is clearly identified that the business has been able to that the hotels have continuous changes and ensures the development of the business.