...1 HOTEL OWNER / OPERATOR STRUCTURES: IMPLICATIONS FOR CAPITAL BUDGETING PROCESS Chris GUILDING Service Industry Research Centre, and School of Accounting and Finance Griffith University – Gold Coast Campus Queensland AUSTRALIA C.Guilding@griffith.edu.au Tel: (07) 5552 8790 Fax: (07) 5552 8068 I am grateful for funding support for this study provided by the Australian Cooperative Research Centre for Sustainable Tourism. I would also like to acknowledge the helpful comments and suggestions provided by two anonymous referees. 23 HOTEL OWNER / OPERATOR STRUCTURES: IMPLICATIONS FOR CAPITAL BUDGETING PROCESS ABSTRACT The findings of a field study concerned with appraising capital budgeting process implications arising from different owner / operator structures employed in the hotel industry are reported. Dimensions of conflict that can arise between hotel operators and owners are examined. Consistent with expectations motivated by agency theory, data collected suggest that capital budgeting systems in hotels operating under a divorced owner / operator structure exhibit more formalisation and a greater propensity for investment proposal cash forecast biasing. These findings suggest a degree of dysfunctionalism associated with the divorced / owner operator structure widely adopted in the hotel industry. Key words: Hotel, Capital Budgeting, Ownership structure, Agency theory.4 ...
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... (4) (Problem Descriptions), (2) to address the problems and needs by defining the solution steps/processes, and search relevant information technologies for the solution process automation on the specific problems and needs (Solution Process, Technology Applications and Automation). The purpose of this paper will include an assessment of the role Information and Communications Technology (ICT) plays in addressing problems/needs in the operation of today’s hotels. In a highly dynamic market whose survival depends on responding rapidly to the changes in related factors; ICT systems must be custom designed to match the objectives of the organization. A hotel is an establishment providing paid lodging which could be on a long or short term basis. There are many types of hotels usually depending on locations, size, and offerings. According to the 2012 NAICS Codes hotels are classed under the 721110 group comprising an industry of establishments primarily engaged in providing short term lodging facilities. Hotels greatly...
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...Guest Cycle in hotel The hotel guest stay cycle can be divided into four main stages. Within these four stages there are important task related to guest services and guest accounting. Front office employees must be aware of guest services and guest accounting activities at all stages of the guest stay. Front office staff can effectively serve the guest if they have a clear understanding of the flow of business in hotel. Guest Cycle also represents a systematic approach to front office operations. 1. Pre - Arrival The Guest chooses a hotel during the pre- arrival stage of the guest cycle. Choice of the guest can be affected by many factors, including previous experiences with the hotel, advertisement, word of mouth referral by friends and colleagues, location, corporate, travel agent booking, hotel name, hotel loyalty program member etc. The guest's decision of making the reservation can also be effected by the ease of making the reservation and the way reservation agent interacted and described the facility of the hotel like room type, room rate, recreational facilities and other attractions near the hotels etc. We can certainly call the reservation area as the sales office for non-corporate or group bookings. Its employees should be sales orientated and present positive, strong image of the hotel. If a reservation can be accepted, the reservation agent creates a reservation on the hotel management software. The creation of this reservation record starts the hotel guest cycle...
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...Preface This manual is intended to serve as practicum guide to students who will take their practicum for hotel and restaurant. The manual serves the following purposes: 1. To introduce students and practicum coordinator to the hotel and Restaurant Practicum Program; 2. To serve as a resource for students in planning the practicum experience in the Hospitality Industry; 3. To articulate the policies and procedures of the Hotel and Restaurant Practicum Program for students and practicum coordinator; and 4. To describe requirements of the Hotel and Restaurant Practicum Program. Additionally, this manual is meant to be used in conjunction with the over-all policies and guidelines of different hotels and restaurants in regard to their practicum Program including requirements, important students policies, and academic policies of the school. There are many procedures, sequences of courses, deadlines, and through their practicum. Each student has an assigned advisor with whom she/he is expected to keep on-going consultation. The student is the one primarily responsible for knowing the information in this manual and keeping apprised of deadlines and on-going requirements and responsible. The Hotel and Restaurant practicum experience is a major testing ground for the student’s knowledge , skills, and values. The student is supported on this experience by the leadership of her/his practicum coordinator. The goals and activities in this presented are intented to provide...
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...Introduction 1. Introduction At present in the world the largest and fastest growing industry is the tourism and hotel industry. Though, in Bangladesh the amount of manpower in hotel industry is not that much high with the comparison of the developed country. But in the near future this industry has a bright future in Bangladesh because of the charming natural beauty, lots of historical places and the largest sea beach of the world. The first part is about the Introduction of Hotel Sea Crown. For an expanding economy, a developed & efficient tourism Hotel is important. Bangladesh Resort and Hotel Limited has been incorporated in Bangladesh 09th day of june,2003 as a private company Limited by share under the companies Act 1994. The principle activity of the company is to business of hotel, restaurant, café, refreshment room. The commercial operation from 12th November,2004 with three star deluxe hotel constructed in its own land at Marine Drive, kala Toli, Cox’s Bazar and hotel named after “ Hotel Sea Crown” and its Corporate office is in Gulshan Model Town, Dhaka from where all reservation, marketing and accounts activities are operated. The methodology, scope of the report & the limitations are also described here. The second part is about overview of Hotel Sea Crown, which includes the historical background, mission & objectives of the hotel. It also plays a great role in Bangladesh. So it faces some threats. But it has a lot of opportunity here. All the departments...
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...Harvard Business School 9-282-042 Rev. September 15, 1986 Marriott Corporation The idea of repurchasing shares was no stranger to Bill Marriott by January 1980. Almost five million shares of common stock had been repurchased on the open market by Marriott Corporation during 1979 at a total cost of $74 million and an average price of $15.16 in the belief that they were undervalued—a belief that still was not fully reflected in the market price. At $19 5/8, the stock was selling at only six times cash flow per share; and its price/earnings ratio of nine was a far cry from historical multiples as high as fifty times as recently as 1973. Its low price seemed to offer once again an obvious opportunity to benefit shareholders. However, the proposal to repurchase 10 million of the 32 million still outstanding shares aroused some uneasiness. If successful, it had the potential of enhancing Marriott's EPS and of increasing family and management control from 20% to 29% of outstanding shares. However, it represented a move that was almost entirely financial—one that would run the debt well above the levels advocated before the Board of Directors only two years earlier. The repurchase would also necessitate renegotiation of restrictive covenants in existing loan agreements. Lastly, the huge size of the proposed program would require a tender price of $23 1/2, a hefty premium of $4 over the current market price. All of this seemed somewhat out of character for a corporation...
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...be expressed in one sentence “It is the first and the last experience a guest has” in any hotel. Housekeeping department handles all customer related care applied in Housekeeping technical operations. The students will have the opportunity to learn various aspects of the function of this department in the upkeep of the Hotel. Food and Beverage Operation Food & Beverage department is not only related to cooking and serving but it also has everything to do with how the guests experiences the service in their rooms, restaurants, bars, banquets, pool, conventions, corporate meetings and or even a small seminars, It is where most guests interact. Accounting This accounting section would not detail the entire department but lays down the principles of accounting, maintenance of the books, cash and or manual registers and basic computer knowledge. It also has everything to do with how the guests experience during their stay at the hotel and restaurant. How to accurately prepare the invoices, bills, checks and balances. Cash and Credit handling procedures etc. Sales and Marketing A hotel guest Relation Officer handles all customers, from greeting to building a rapport, from the individual or a group, checking in the out and is instrumental in customer retention & future business. Computer and IT Students will be exposed to the computerized system that are used in Hotel & Restaurants which would provide a hands on experience in learning, reservation, inventory...
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...HND (Business)/ Foundation Unit 36: Starting a small business Assignment Title: “Starting a business” HND (Business)/ Foundation Unit 36: Starting a small business Assignment Title: “Starting a business” Submitted by: Ma Yamin Thu (Business Foundation) Submitted by: Ma Yamin Thu (Business Foundation) Date: (26.6.2016) Date: (26.6.2016) Contents Part 1: INTRODUCTION 2 1.1 Introduction 2 1.2 Objectives 2 Part 2: EXECUTIVE SUMMARY 3 Part 3: ASSIGNMENT 4 Task 1: Business Idea and Target Market 4 1.1 The initial business idea using relevant criteria 4 1.2 Identification of the target market 6 1.3 Demonstration the methods of the target market 9 Task 2: Required Skills 11 2.1 Skills needed to run the business 11 2.2 Legal and financial aspects that will affect the start-up of the business 13 2.3 Analyzing the areas of development skill 17 Task 3: BUSINESS PLAN 18 3.1 Proposal for starting a small business 18 3.2 The implications of legal and financial aspects 20 3.3 Business report 22 Part 4: RECOMMENDATION AND CONCLUSION 26 4.1 Recommendation 26 4.2 Conclusion 26 Part 5: REFERENCES 27 Part 1: INTRODUCTION 1.1 Introduction I am investigating to start a small business and I want it to become a viable one in the real world among the ever changing environment. Necessary, sufficient and reliable knowledge and information are needed in making a good decision. Skills and experiences are also needed in order to get the successful business. I need to have the...
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...environments at good locations with multicultural and multilingual employees. Pleasing employees created less turn-over rates and non-unionized labor market. As a result, this created a differentiated service and created priceless appeal. Having good relationships with local tourism authorities to improve the appeal of destinations the hotel chain operates in. Having a deep local knowledge and community ties. Having above average performance levels of the global industry in Hawaiian market, which directly affects the hotel chain’s success. Being able to compete with other worldwide brand-recognized hotels, Their commitment of hospitality didn’t change even if they added properties (Both on-beach properties/condominiums and off-beach budgeted properties) in their portfolio. Condominiums customers (families with $90,000-$150,000 income) had four times as many reservations coming directly from the Internet, recovering faster after a soft economy. Having centralized services such as accounting, IT, finance, engineering, purchasing, and special projects provided an efficient workflow in OHANA Hotels. IT Function: Centralized IT systems increased their capabilities and decreased overall cost. Stellex, guaranteed complete redundancy and 24 * 365 uptime, provided revenue management systems for the wholesalers’ interaction, reservation center support, and blocks management....
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...FRONT OFFICE ORGANIZATION CHART AND THEIR DUTIES *Organization chart is on the paper Corporate Owner-The overall owner and head of all the hotel operations General Manager- The person in-charge of directing and leading the hotel staff in meeting the financial, environmental and community responsibility of the hotel. * He develops and stylizes organization charts that fit his or her plan to meet the goals of the particular company. Assistant General Manager- holds a major responsibility in developing and executing plans developed by the corporate owners, general managers, and other members of the management staff. Front Office Manager - The person responsible for leading the front office staff in directing hospitality -Reviews the financial draft of the night audit, daily review of the financial accounting procedures at the front desk and other guest service areas during the previous 24 hour period and an analysis of operating results Desk Clerk - verifies guest reservations - registers guests -assigns rooms -distributes keys -communicates with the house-attractions -accepts cash and gives change -act as a liaison between the lodging establishment and the guest as well as the community Cashier- processes guest checkouts and guest legal tender and provides change for guests. Reservations Manager - can be found in the many of the larger lodging establishments * Responsible for taking incoming requests for rooms and noting special requests for service ...
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...Royal Resort and Casino (RRC), a publicly traded company, caters to affluent customers seeking plush surroundings, high-quality food and entertainment, and all the “glitz” associated with the best resorts and casinos. RRC consists of three divisions: hotel, gaming, and entertainment. The hotel division manages the reservation system and lodging operations. Gaming consists of operations, security, and junkets. Junkets offer complimentary air fare and lodging and entertainment at RRC for customers known to wager large sums. The entertainment division consists of restaurants, lounges, catering, and shows. It books lounge shows and top-name entertainment in the theater. Although many of those people attending the shows and eating in the restaurants stay at RRC, customers staying at other hotels and casinos in the area also frequent RRC’s shows, restaurants, and gaming operations. The following table disaggregates RRC’s total EVA of $12 million into an EVA for each division: Royal Resort and Casino EVA by Division (Millions$) Entertainment Hotel Gaming Total Adjusted accounting profits $ 5 $ 10 $30 $45 Invested Capital $40 $120 $60 $220 Weighted-average...
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...Rooms Division Department I- HOTEL ORGANIZATION: ( In order to carry out its mission, global and departmental goals and objectives, every company shall build a formal structure depicting different hierarchy of management, supervision, and employee (staff) levels. This very structure is refereed to as organization chart. Moreover, the organization chart shows reporting relationships span of management, and staff/line functions. ( There are two types of relationships that might exist between any two functions at any organization chart. These are: 1. Solid Lines: (i.e.:((((() this kind of relationship shows Direct Line Accountability. To illustrate, if position A and B are linked with a solid line, it means (for example) that A shall report to B, that B shall tell A what to do, when to do, and how to it. Lastly, B shall be liable (i.e. responsible) for A. 2. Dotted Lines: (i.e. (---------() this kind of relationship entitles both positions linked with dotted lines to have a high degree of Cooperation and Communication but not direct line accountability. Usually in the hotel industry, where the sole aim is to satisfy guests, positions, whatsoever level in the hierarchy they occupy, shall coordinate jointly their efforts so as to provide quality, standard product to their customers. Therefore, examples of dotted lines are numerous in hotel organization charts. ( Every organization chart shall be flexible, to reflect the ever-changing environmental dynamics and, hence be able...
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...Introduction: When we start to talk about hospitality and tourism sector and especially in hotel industry, they offer three core product to their consumer: accommodation, food and beverages and these all services are very vital for lodging industry, although the majority of hotels are lead for accommodation, because most revenue deriving from the sales of the rooms (Schneider, Tucker & scoviak, 1999).Hotel room sales account approximately 55% of hotel revenue as against 23% for food and 10% for beverages (British Hospitality association, 2003, table 32, 34 & 36). According to Medlik and Ingram (2003), the operating cost of UK hotel rooms are, on average 26% of room sales producing unit profits up to 74% where as F&B expenses combined are almost 65% of Food and Beverage expanses combined about 35% (table 13 & 18). Thus hotels provides both tangible and intangible products, and its relay on tangible product of food, drinks and accommodation as we discussed in starting, though it’s heavily depend on the sales of intangible products- the service- and its depend on the customer’s subjective interpretation of their experience. And quality rating by consumer can’t be judge because every customer has different grading criteria. That is called ‘Heterogeneity’. Further more the one of the most important features of the hotel product/service is the impossibilities of separation of production from consumption. The production of service and consumption are going simultaneously...
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...Computerisation Strategy Proposal for the new TVU/LSHT training hotel (2009) 1. Introduction The aim of this report is to look at the possible implementation of computer and information technologies at the Thames Valley University, London School of Hotel Training (TVU/LSHT). This has become necessary because the business has experienced a severe downturn in revenue since 2009 which has resulted in them experiencing trading losses and a lack of investment in both the business and the facilities. Consequently, it has been recognised that a new strategy needs to be devised; which will include the development of new facilities, the enhancement of existing facilities and the introduction of a hotel wide computerisation system which will maximise the hotels operational efficiency. This proposal will specifically present the Consultants vision for the effective and successful introduction of information technology within the TVU training hotel; it will also take into account the increasing statutory obligations that it needs to meet. According to Wood and Brotherton (2008, p.331) Lodging businesses can no longer expect to succeed without the solid support of information technologies (IT), this is true for a variety of reasons but is partly because the current customers that the lodging establishments are looking to attract are part of the Net Generation, these people are surrounded in their daily life by IT, if these people are not provided with the technology that they...
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...The Role of the Hotel Reception Staff To a great extent, people judge whether their stay in a hotel was good or bad by how they were treated by the reception staff. The reception staff are the visible representatives of the hotel. They therefore have a lot of responsibility on their hands. Anything that goes wrong in the hotel is considered the receptionists' fault, and this is often true. Good planning and preparation on behalf of this department leads to less complaints and more satisfied returning guests. Reception is where the hotel is coordinated. They are the ones that know how many guests are in the hotel, how many are coming and how many are leaving at all times. Arrangements must be made to accommodate everyone appropriately or complaints from guests will be justified. If a guest needs anything, they go to reception first. For this reason, the reception staff must be informed of everything that happens in a hotel. The receptionists are the image of the hotel in the eyes of the guests, especially. A good receptionist will make you feel comfortable in your "home away from home". There are many times when we don't even see the guests during their stay -save for giving them their room key on petition, but others go to reception quite often, because they need advice on touring the area, have a problem, or just need someone to chat to. There are very few times when receptionists in bigger hotels have nothing to do. it's a misconception that they are only there to hand...
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