Mgmt 3010 - Financial Department Managers Summary Report
Essay by Haolin Ruan • January 10, 2018 • Lab Report • 1,248 Words (5 Pages) • 1,009 Views
Financial Department Managers Summary Report
Haolin Ruan
200297517
Strategic Management
MGMT 3010
Professor Erin Wilson
January 10, 2018
TABLE OF CONTENTS
Overview 3
Competitor Status 3
Total Revenue 3
MAnager’s Summary 3
Development Portfolio 3
RevPAR 4
Hotel Summary 5
Highlights 5
Refurbishment Condition
Departmental Operating Schedules
Low point 6
Total Expense
Strategic Plan 8
Comparison 8
REcommendations 9
Food and beverage 8
Financial Department Managers Summary Report
The purpose of this report is to analyses Seascape Inn’s financial performance over the last four years. Overall, we have achieved an excellent performance in this period comparing to our competitor. Most data indicate a positive trend. Also, we had an excellent performance on creating revenue. We increased over 75% of total revenue during Year 3 to Year 0.
Competitor Status
Seascape Inn | Competitor | |
OPERATION: | ||
REVPAR$ | 88.10 | 61.01 |
Gross Operating Profit (IBFC%) | 40.08 | 38.42 |
Room Market Share% | 18.64 | 14.14 |
Relative Market Share% | 56.9 | 43.10 |
OWNER: | ||
ROCE%-Pretax profit/Capital Employed | 29.42 | 21.81 |
GUEST: | ||
Guest Satisfaction Survey (%) | 62 | 56 |
STAFF: | ||
Staff Satisfaction survey (%) | 77 | 64 |
OVERALL RANKING | 1 | 2 |
[pic 1]
Manager’s Summary
As the manager of financial department, some decisions we have made significantly influenced our hotel’s development and led to great achievements.
Development Portfolio
Decisions | Cost($) | Installation Time | |
Year3 | Build Health Club | 895,917 | 18 weeks |
Year2 | Restaruant Extension | 148,640 | 8 weeks |
Year2 | Parking Lot Extension | 87,592 | 12 weeks |
Year1 | Build conference center | 530,000 | 20 weeks |
While we were making those decisions, we focused on considering our customers’ and staffs’reviews, financial statement as well as competitor’s statu. The strategy we used are fulfilling our guest’s demands within our ability. Making those decisions brought a lot of achievement to Seascape Inn, and one of our best achievement is the steady increasing of RevPAR in this period During Year 0 and Year 3, RevPAR of Seascape Inn had increared by 63%, which indicates our revenue grows constantly.
After we started built extra facilities and services at our hotel, our general booking performance were getting better and better. During Year 0 and Year 1, after we built conference center, the room occupany increased from 33.3% to 71.3%. Afterwards, we extened our restaurant and parking lot in Year 2, and the room occupany were increased from 71.3% to 83.5%. In Year 3, after we builded the Health Club, the room occupany increased to 89.8%. Based on these data, we believe the room occupany will achieve over 95% in next serveral years.
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Year3 | Year2 | Year1 | Year0 | % Change | |
Available Rooms | 125 | 125 | 125 | 125 | 0 |
Average occupancy% | 89.8 | 83.5 | 71.3 | 33.3 | 63.0 |
Average room rate | 98.2 | 83.4 | 77.3 | 90.3 | 8.0 |
RevPAR | 79.7 | 81.2 | 53.6 | 29.6 | 63.0 |
Hotel Summary
Seascape Inn is promising in hospitality industry, as the amount of the Room Night Sold have increased more than 50% between Year 0 and Year 3. In past four years, our team has a professional and extraordinary performance on making operating decisions. We carefully evaluated very single comment from our guests, analyzed our financial statement, listened to our employees, and paid closely attention to our competitors. All those hard work is the key to make better strategic decisions for the hotel in the past four years.
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