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Financial ratio analysis for hotel in Costa Mesa, California

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Prepare a analysis of Situation 9.6

In your financial analysis, discuss the findings from your calculations and how they effect the organization. Your analysis should be based on the calculation of the following financial ratios:
Occupancy percentage
Cost of labor percentage for rooms and F&B
Cost of food sold percentage
Cost of beverage sold percentage
Average daily rate
Profit margin for rooms and F&B
Total revenue change from budget for rooms and F&B
Housekeeping cost per occupied room
Room sales to total sales
Total rooms division payroll per occupied room

***Also attached is some notes on financial ratio, dealing with hotels***

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? Occupancy percentage. Rooms sold: rooms available. The occupancy percentage of the hotel is 80.69% which is far higher than the U.S rate average of 60 % to 70%. Therefore performance of hotel is good.

? Cost of labor percentage. Payroll +related expenses: total revenue
Cost of labor for rooms division is 16.25% which is lower than the industry average of 18 to 22%. Therefore cost control is effective in room division. Cost of labor percentage for F & B is 37.53% which is in line with the industry rate of 35% to 45%.

? Cost of food sold percentage. Cost of food ...

Solution Summary

Financial rate analysis for hotel in Costa Mesa, California is examined.

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