Hospitality Simulation Management Solution 2022

Running head: HOSPITALITY SIMULATION MANAGEMENT
HOSPITALITY SIMULATION MANAGEMENT
Name of the Student
Name of the University
Author Note

HOSPITALITY SIMULATION MANAGEMENT2
Solution to answer no. 1
According to the occupancy criteria, the hotel demonstrates 93.1 persons against the
competition of 76.5 which is 122% of the market competition. The ADR or average rate paid
for rooms sold for the hotel is $123.09 against the market competition of $105.3 which is
116.9% of the market competition. The REVPAR of the revenue per available room criteria
of the hotel demonstrates $114.66 against the Index of 142.3%.
Solution to answer no.2
The management of the Investment are done with the help of the following ratios,
which are as follows:
Current Ratio: Current ratio demonstrates the capability of an organization to pay off its
short-term liabilities (Xu et. al. 2014). The Current Ratio over the years is showing a
declining trend from 2.01 in 2015 to 1.98 in 2019 signifying the decline in the ability of the
hotel to pay off its short-term liabilities.
Quick Ratio: It demonstrates the capability of the firm to meet its short-term liabilities with
the help of the most liquid assets excluding the inventories. The quick ratio as well is
depicting a declining trend from 1.97 in 2015 to 1.94 in 2019 depicting a reduction in
capability to pay off its short-term liabilities with the most liquid current assets.

HOSPITALITY SIMULATION MANAGEMENT3
Debt-Equity Ratio: It represents the relationship of the debt of the organization with the
owner’s capital. Here the Debt-Equity ratio of the hotel on 2015 was 8.63% and on 2019 was
25.77% which signifies that the debt have increased over the years however it’s below the
standard of 50% signifying a safer company where debt is less than the owner’s equity.
Debt Ratio: It is the relationship of the total assets with the debt (Zainudin and Hashim
2016). Here the debt ratio in 2015 was 8.20% and in 2019 was 20.49% signifying that more
assets over the years are purchased with debt capital however it is way below the standard of
30%.
Equity Multiplier: It demonstrates the relationship of the assets of the firm with the
shareholder’s equity. The Equity multiplier over the years have been 1.05 and 1.25
respectively. This shows majority of the assets are financed by the shareholders equity.