Hotel Financial Ratios Sheet

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Question Description

Resource: Blue Mist Hotel Financial Ratios Sheet

You are the Assistant Manager at the Blue Mist Hotel, a 425-room hotel in Phoenix, Arizona. The General Manager has asked you to prepare a 700- to 1,050-word report on the financial status of the hotel for the month of May.

Access the Blue Mist Hotel Financial Ratios sheet and calculate the remaining six financial ratios.

Use the ratio calculations to determine the financial status of the hotel for the month of May.

  • Explain different types of revenue streams in the hotel
  • Explain how the financial ratios are used to maximize profits
  • Describe the importance of demand forecasting
  • Describe the advantages and disadvantages of overbooking
  • Define how RevPAR is used in the revenue management strategy

Click on the Assignment Files tab to submit your report.

Tutor Answer

TutorCharles
School: UC Berkeley

.

Outline
Introduction
Body
Conclusion
Reference


Running head: FINANCIAL RATIOS

1

Financial Status Report of Blue Mist Hotel
Name of Student
Institutional Affiliation

FINANCIAL RATIOS

2
Financial Status Report of Blue Mist Hotel

Part One
Below is the Blue Mist Hotel departmental income statement in the month of May. The reports
are categorized in terms of the type of revenue they generate, that is, rooms department report
and food and beverage department report. 8, 432 rooms were sold during the month.

FINANCIAL RATIOS

3

Financial Ratio Calculations
1. (a) Cost of labor percentage for Rooms
=Payroll expenses divided by total revenue
= (49,568 + 27,215)/358,078
=0.21 X 100
=21%
Ratio interpretation: Labor productivity in Rooms Department for Blue Mist Hotel is
21%, which is not ineffective for the organization’s management.

(b) Cost of labor Percentage for Food and Beverage
=Payroll expenses divided by total revenue
= 115,893/(225,789 + 69,523 + 12,862)
= (115, 893/308,174) X 100
=37.71%
Ratio interpretation: Labor productivity in Food and Beverage department for Blue
Mist Hotel is 37.7%, which is not ineffective for the ...

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Review

Anonymous
awesome work thanks

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