Hotel Industry Analysis
FINANCIAL ANALYSIS (HOTEL INDUSTRY)
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By Donnabelle Pineda and Marge Javillonar
Managerial Accounting
ADB-MBA Program, Batch 10
Submitted to:
Prof. Ricardo Palo
Date:
4 August 2010
I. Hospitality Industry
The hospitality industry is a trillion dollar service sector within the global economy. The industry covers a broad variety of service industries including, but not limited to, hotels, food service, casinos, and tourism.
This paper will concentrate on the hotel industry and will analyze 3 international hotel groups. Specifically, this paper will look at each of the hotel group’s financial statements, compare and analyze them using the different measures of liquidity, profitability and efficiency, and draw conclusions from these analyses regarding the financial performances of each hotel group.
1. Mandarin Oriental Hotel Group[1]
Mandarin Oriental Hotel Group (Mandarin) is an international hotel investment and management group with deluxe and first class hotels, resorts and residences in sought-after destinations around the world. The Group now operates 42 hotels, including some under development, representing over 10,000 rooms in 27 countries (17 hotels in Asia, 13 in The Americas, and 12 in Europe, Middle East and North Africa). In addition, Mandarin operates 14 Residences at Mandarin Oriental, connected to its properties. The Group has equity interests in many of its properties and net assets of approximately USD2.1 billion as at 31st December 2009.
Mandarin’s aim is to be recognized widely as the best global luxury hotel group, providing 21st century luxury with oriental charm in each of its hotels. They plan to achieve this by investing in their exceptional facilities and its people, while maximizing profitability and long-term shareholder value. Their strategy is to open the hotels currently under development, while continuing to seek further selective
[pic] [pic] [pic]
By Donnabelle Pineda and Marge Javillonar
Managerial Accounting
ADB-MBA Program, Batch 10
Submitted to:
Prof. Ricardo Palo
Date:
4 August 2010
I. Hospitality Industry
The hospitality industry is a trillion dollar service sector within the global economy. The industry covers a broad variety of service industries including, but not limited to, hotels, food service, casinos, and tourism.
This paper will concentrate on the hotel industry and will analyze 3 international hotel groups. Specifically, this paper will look at each of the hotel group’s financial statements, compare and analyze them using the different measures of liquidity, profitability and efficiency, and draw conclusions from these analyses regarding the financial performances of each hotel group.
1. Mandarin Oriental Hotel Group[1]
Mandarin Oriental Hotel Group (Mandarin) is an international hotel investment and management group with deluxe and first class hotels, resorts and residences in sought-after destinations around the world. The Group now operates 42 hotels, including some under development, representing over 10,000 rooms in 27 countries (17 hotels in Asia, 13 in The Americas, and 12 in Europe, Middle East and North Africa). In addition, Mandarin operates 14 Residences at Mandarin Oriental, connected to its properties. The Group has equity interests in many of its properties and net assets of approximately USD2.1 billion as at 31st December 2009.
Mandarin’s aim is to be recognized widely as the best global luxury hotel group, providing 21st century luxury with oriental charm in each of its hotels. They plan to achieve this by investing in their exceptional facilities and its people, while maximizing profitability and long-term shareholder value. Their strategy is to open the hotels currently under development, while continuing to seek further selective