Lezinah Ncube has just taken a new job as regional manager of a limited service hotel chain. Her region includes six hotels, with each hotel consisting of approximately 150 rooms each. Each hotel also offers a small amount of meeting space and provides its overnight guests with a complimentary breakfast. Prior to this job, Lezinah served as a district manager for a national pizza company, where she was responsible for the supervision of ten stores. 

At the end of her first month’s work, Lezinah receives seven income statements: one for each individual hotel as well as one consolidated income statement summarizing the overall financial performance of her six properties. Lezinah’s supervisor has asked her to comment on the financial results achieved by her region.

1. What specific differences will exist between the monthly income statements Lezinah must now analyze and those she likely reviewed in her previous foodservice job?

2. In foodservice, restaurateurs evaluating revenue levels are concerned about guest counts and check averages. Hoteliers are concerned about occupancy levels and average daily rates. Explain the similarities between these two sets of concepts and their affect upon the revenue section of her income statements.

3. Lezinah was very good at “P&L” analysis in her previous job but is a bit nervous about the same task in her new position because she has never reviewed a hotel statement of income statement. As her good friend, list and explain for her six specific characteristics of hotel income statements that are identical to those of restaurants and thus strongly suggest that her analysis skills as a restaurateur would likely carry over into her new career as a hotelier.