Boutique hotel business report

Business Report: 3000 words

As a future leader in Hospitality and Tourism, you will frequently use financial accounting to make better business decisions. Managers use various types of indicators to evaluate company performance and highlight areas of improvement. As a business simulation scenario, your team will manage an international hotel operation with 30 boutique properties. The group report gives you an opportunity to work with a team of your peers and investigate a topic that is of significant importance to the hotel sector.

The purpose of this assignment is threefold. First, the design of this report is to be a practicum for learning leadership skills including group decision making, conflict resolution, interpersonal communication, and critical analysis. Second, you have an opportunity to implement financial solutions both independently and as part of a diverse team. Finally, this assignment also provides you an opportunity to develop effective written communication skills.

Using the template provided, apply financial accounting decision-making concepts and skills for your business to structure your Report:

1. Prepare a “transactions analysis” of summary 20 transactions in 2014 and 2015 that shows the changes in resources over the past 2 years of operation as a business. 


2. Based on “transactions analysis” prepare an Income Statement for 2014 and 2015; discuss any important changes to Revenues and Expenses from 2014 to 2015. 


3. Prepare a Statement of Changes in Owner’s Equity in 2014 and 2015; discuss any important changes to Retained Earnings from 2014 to 2015. 


4. Prepare a Balance Sheet in an appropriate format for 2014 and 2015; discuss any important changes to Assets, Liabilities and Owners’ Equity from 2014 to 2015. 


5. Calculate Current Ratio (Working Capital Ratio) and Quick Ratio for 2014 and 2015; discuss any important changes to Liquidity from 2014 to 2015 by comparing these changes over time and with other hotel benchmarks. Use the 4th Qtr. 2015 Hotel and Tourism Industry Financial Ratios (from https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=906&hist=4 ) and one other global hotel from Accor, Hyatt, IHG or Marriott (2015) as your benchmarks. (from https://www.marketwatch.com/investing/stock/0069/profile) 


6. Calculate Debt to Equity ratios for 2014 and 2015; discuss any important changes to Solvency from 2014 to 2015 by comparing these changes over time and with other hotel benchmarks. Use the 4th Qtr. 2015 Hotel and Tourism Industry Financial Ratios (from https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=906&hist=4 ) and one other global hotel from Accor, Hyatt, IHG or Marriott (2015) as your benchmarks. (from (from https://www.marketwatch.com/investing/stock/0069/profile) 


7. Calculate Net Profit Margin and Operating Margin for 2014 and 2015; discuss any important changes to Profitability from 2014 to 2015 by comparing these changes over time and with other hotel benchmarks. Use the 4th Qtr. 2015 Hotel and Tourism Industry Financial Ratios (from https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=906&hist=4) and one other global hotel from Accor, Hyatt, IHG or Marriott (2015) as your benchmarks. (from https://www.marketwatch.com/investing/stock/0069/profile) 


8. Calculate Asset Turnover Ratio for 2014 and 2015; discuss any important changes to Efficiency Ratio from 2014 to 2015 by comparing these changes over time and with other hotel benchmarks. Use the 4th Qtr. 2015 Hotel and Tourism Industry Financial Ratios 


(from https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=906&hist=4 ) and one other global hotel from Accor, Hyatt, IHG or Marriott (2015) as your benchmarks. (from (from https://www.marketwatch.com/investing/stock/0069/profile)

9. Identify specific concerns or possible areas of management improvement; examine areas of liquidity, solvency and profitability, revenues and expenses together with the management of assets, liabilities and equity. Evaluate any financial areas of concern and opportunity including recommendations for future improvement by management. In this section of the Report, as a team, explain how you are making better business decisions to improve the company financially.

Please use "working capital ratio" from csimarket.com to benchmark against your work and your findings from "marketwatch.com"