Tarun owns a small chain of middle-range hotels in the Netherlands and wishes to assess their relative performance. In addition to providing rooms, every hotel has a bar and a small restaurant. He has gathered some financial and non-financial data about each hotel (see Table 16.6). The hotels are open for 300 nights in a year and have an average of 1.5 guests per room per night.

REQUIRED:

a) Assess the performance of each hotel by combining financial and non-financial data.

b) Discuss key issues arising from the above answer.

Transcribed Image Text:

Table 16.6 Tarun's hotel data The Hague Amsterdam Delft Total revenue per hotel 619,000 708,000 238,200 per annum Total operating profit per 69,400 65,700 20,540 hotel per annum Number of rooms 20 25 10 Average number of rooms 17 21 6 occupied per night Rate per room 50 60 40 Total restaurant revenue 294,000 240,000 151,200