Financial Performance of Crystal Hotel Pty Ltd

Subject name: BIZ201 Accounting for Decision Making
Assessment title: Scenario analysis - Individual
Date: 18th April, 2020
Student name:
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Executive Summary:

The report discusses the financial performance of Crystal Hotel Pty Ltd. and
compares the financial performance to the industry benchmark for this category
of hotel. The report focusses on various parameters of the business such as
revenue, cost of sales, Personnel cost, unallocated operating costs and total cost
proportions.
The report also discusses the profitability, efficiency, liquidity and solvency of the
business, through various rations computed in this regard and the comparison of
such ratios with the industry benchmarks for companies with similar hotel
operations.
The report also provides information on 3 additional industry specific
benchmarks which the company could use, in order to track the performance of
the company, as compared to the other comparable companies in the industry.
These indicators are peculiar to hotel industry and are used across the industry
by the experts, to track the performance of a hotel and also to benchmark it with
the performance of other hotel.

Contents
Introduction:.......................................................................................................... 4
Discussion:............................................................................................................. 5
Comparison of financial performance with industry...........................................5
Based on the number of rooms.......................................................................5
Based on the rate charged per night...............................................................5
Ratio analysis:.................................................................................................... 5
Profitability:..................................................................................................... 5
Efficiency:........................................................................................................ 6
Liquidity:.......................................................................................................... 6
Solvency:......................................................................................................... 6
3 additional industry specific benchmarks:........................................................6
RAR (Revenue per Available Room):...............................................................6
Cost per occupied room:.................................................................................7
Labour cost ratio:............................................................................................ 7
Conclusion:............................................................................................................ 7