B Analysing operating review

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Assignments

Name of assignment

Analysing the operating review. You will analyse the Operating review as it is presented in your Team file over the last year.

Situation

Being a family hotel, the Bergmans did not care too much about ratios, benchmarks and key data. Of course, a number of key metrics have been produces and partly used over the years. In the hospitality industry, obviously, occupancy rate and revenue per room are, from business perspective, very important. So, there is some information collected. It seems, though, the hotel has never used the available data to its full potential.

Goal

Diving deeper into the available financial figures may bring new insights that could help in analysing the results and to make better decisions for the years to come. Especially the use of ratios related to the operating review could be helpful in this. The balance sheets and liquidity data are, regretfully, not available yet, so you will have to work with the operating review only.

Task, deliverable

Analyse the available data in the operating review, and create additional, relevant ratios. Furthermore, find relevant benchmarks in the hospitality industry as a comparison to the figures of your hotel.
Draw your conclusions and give concrete information to Jill Jandal on how to proceed the hotel business operations, as a consequence of your calculations.

Assessed elements

• Are the additional ratios valuable in the context of the hotel?
• Are the benchmarks relevant, comparable, usable?
• Are the conclusions, drawn from the data, correct and concrete?
• Are all the sources accounted for?

Additional information

• Revenue per room
• Hotel industry worldwide statistics & facts
• Financial ratios
• Study on hotels performances
• Hotel industry metrics-ratios

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