preview

Hm 490 Financial Analysis Paper

Satisfactory Essays

Kellee Armstrong
HM 490
Financial Analysis Paper

Three positive observations that I made from the Mount Inn was the increase of the occupancy rate, rooms revenue, and beverage revenue. The occupancy rate jumped from 64.9 % in 2016 to 65.1% in 2017. This was a .20 increase in the rooms that were being occupied The hotel was able to get more customers into their doors. The rooms revenue jumped from $6,159,536 in 2016 to $6,414,875 in 2017.This was a $255,339 increase in revenue for rooms in the Inn. Another finding for the rooms revenue increased from being 70.77% to 71.72% out of the total revenue percentages. The last positive observation was the increase of the beverage revenue from $566,230 in 2016 to $637,400 in 2017. This was a $71,170 increase in revenue. The hotel is definitely growing revenue wise due to increase of customers coming into the hotel.
Although the General Manager was able to increase the net income from $3,612,234 to $3,621,324 there are many improvements that still need to be …show more content…

The salaries/wages for F&B also increased by $87,258.00 and jumped from 11.20% to 11.87% from 2016 to 2017. This could be from the increase of occupied rooms in the hotel jumping from 64.9% occupancy to 65.1% occupancy. This can be improved by not overstaffing the hotel staff, but also not understaffing your hotel staff so that employees are not burnout. This can be accomplished by giving housekeepers more rooms to clean, avoiding overtime, and letting staff members go home early if the hotel is busy to cut labor costs. Maintenance cost jumped from $22,511 to $30,019 that was 8 % increase in cost. This can be improved by preventive maintenance tasks such as taking care of the equipment so it last longer. The maintenance staff doing inspections of the equipment to make sure that if they equipment needs to be fixed or completely replaced that it is handled

Get Access