The Financial Performance of the UK Hotel Industry - Dissertation Example

The paper entitled 'The Financial Performance of the UK Hotel Industry' is a cognitive example of a marketing dissertation. This study provides a detailed understanding of the financial performance of the UK hotel industry. During the past decade, the UK hotel industry has suffered from both ups and downs. This results in a growing number of hotels in the country as a result of which the competition among the hotels is also increasing. Thus, the hotel owners are required to track the financial performance of their hotels, based on which effective business strategies can be adopted in order to improve their performance and sustain profitably among the competitors.

In this study, the financial performances of 11 hotels of UK have been considered including Whitbread PLC, Intercontinental Hotels Group, Millennium & Copthorne Hotels, Greene King PLC, Accor UK Economy Hotels Limited, EIH Associated Hotels Ltd, Mandarin Oriental, Minoan Group PLC, Elegant Hotels Group PLC, easyHotel PLC, Specialist Investment. The financial performances of these hotels have been evaluated with the help of time series analysis in order to ascertain the overall performance of the UK hotel industry.

Findings demonstrate cyclical fluctuations in the tax rate amount payable by the hotels in the UK. Similarly, the net margin also demonstrates cyclical fluctuations which represent the differences in the profit margin earned by different hotels. The average assets turnover ratio revealed through findings shows a secular trend whereas the return of assets of the companies shows irregular variation. The research findings also demonstrate that the average financial leverage and return on equity shows cyclical fluctuations that represent the profitability of the overall UK hotel industry.

During the past few decades, the hotel industry all across the world, including the UK, has been experiencing significant growth and development due to the increasing number of travel destinations and increasing lifestyle choices of people (Harrington & Akehurst, 1996). The growing demand for hotels has accelerated the number of service providers in the country allowing the better scope of profitability.