The Financing Of Hospitality Industry

Our team chose the hotel industry in the United States for our economic analysis. The hotel business has existed since the earliest times, and has influenced the development of the economy since the founding of this country.

. Hospitality is one of the largest growing industries in the world. Past two decade word has witnessed booming growth of hospitality industry. Three are different category of service offers to different Clients like luxury to budget etc. This sector play very important role in countries GDP growth and employment growth. There are lot issues facing this industry these are different sustainable issues like social, economical and environmental issues which increase coast .another one is increasing operating cost and labor cost problem one of the major problem facing nowadays because shortage of skilled labors, highest staff turnover etc. another problem is increasing competition many companies force to cut down their prices

Be Our Guest is a growing firm specializing in providing high-end equipment and services to catering firms. The company is considering its financial needs and appropriate capital structure to ensure available funding for growth and flexibility as well as to meet the day-to-day needs of its highly seasonal business. This paper attempts to analyze the key success factors of the firm and assess the appropriate funding levels from both the company?s perspective as well as that of the bank.

Developing a business plan for an existing business or conducting a feasibility study for a new venture requires a thorough analysis of market conditions. Market conditions in your area have a significant impact on the profitability of your hotel or motel. The strength of the local lodging market affects how many rooms you can sell and the rates that you can charge. This guidebook will help you analyze your market so that you can gauge the potential of your operation and make more informed operating and investment decisions. On the pages that follow are a series of checklists to help you collect and analyze information as part of a hotel/motel market analysis. The checklists, tailored to the hotel/motel

he goals of chapter 2 are to introduce you to the financial and management reports you will encounter during your hospitality career and to teach you how to read and interpret them. The more you advance within your company, the more you will rely on these reports to succeed. The more familiar you are with the financial statements, management reports, and control systems presented in this chapter, the better your chances will be for promotion and the more effective you will be as a manager. We begin the chapter with a brief review of the accounting principles and system of accounts that provide the foundation for the preparation of financial statements. We discuss new accounting rules affecting the hospitality industry today, and then focus the balance of the chapter on the management reports and control systems that will help you make informed financial business decisions and become a successful hospitality manager.

1).The relationship between Hospitality and Tourism: Tourism and hospitality go hand in hand, the hospitality industry offer services like accommodation, transportation, food and beverage, recreation and leisure. Tourism is the activity by the tourists where they engage in travelling to destinations where they want to experience recreational and leisure activities and most of the time avails of accommodation, food and beverage. The hospitality industry is the supplier of the services for tourism. The meaning of hospitality is providing a safe and enjoyable environment for patrons. It also means responsibly serving liquor, to ensure that patrons do not become unduly intoxicated and subsequently a problem for management, staff and the

As an employee of Alpha Beta services my aim is to help small business owners or people think of starting a business within the hospitality industry by informing them of the funding available for these businesses and income generation for businesses and service industries. With small businesses or people thinking of starting a business is probably always the biggest problem. Below is a list of some of the most popular funding and start-ups available:

Owned hotels is not a scalable business model with the constraints of capital and also low returns business. Hotel Services / Royalty based business model offering them scope for improving the scale, higher margins and profitability. Even though improvement in margins and profitability ratios is positive, steep rise in debt is a key concern. As the company is aggressively growing its assets, the need for higher capital is consistently raising. As the company is spending over and above its internal accruals, the debt is constantly inching up. However, if the increase in cash flow from operations outpaces capex requirement, positive free cash flow will be generated. This will help in the re-payment of debts.

There can be collateral risk when the value of the collateral falls below the replacement cost of the securities. In case of a settlement

We look the two business lines in more details. Hotel & restaurant line dominants Whitbread 's business. Based on company data, the hotel & restaurant segment yields a considerably higher pre-tax operating profit than Costa. However Costa is growing much faster in recent 5 years. In response to customers ' welcoming, Costa contributes more to the group 's total earnings than before. Revenue distributions by business is shown in Figure 2:

WMCHI’s net income for 2008 improved by .004 points, but reflected a 50% decline on its ability to use its assets as a source of revenue. Moreover, because of the company’s heavy reliance on borrowings from financial institutions to support its expansion, the return on their stockholder’s equity also went down by more than 50% of 2007’s figures. We can surmise that the company’s operating profit is not sufficient to give its shareholders a satisfying level

The ability to control finances effectively is a hugely important part of running a successful hospitality business. The control of finance determines the cash flow of the business whether positive or negative. A variety of procedures can be optimised to suit each business. These procedures pay dividends when selecting goods and developing a specification, as well as costing dishes, menus and functions.

People borrow money for many reasons, and the amount of every loan varies. In essence, the repayment of the loan is the primary obligation of the borrower. However, not all loans are paid in full. In some cases, the unpaid balance remains beyond the paying capacity of the borrower. This can cause problems for both the borrower and the lender. To avoid this predicament, there are situations where the borrower requires collateral from the lender in case the lender defaults on payment. In short, the collateral is meant to secure the borrower’s repayment of the loan. If the borrower is unable to make due and diligent payment — or if the borrower does not make repayment at all — the lender can ask for the foreclosure of the property issued as collateral for the loan. In sum, foreclosure refers to the process where the lender tries to recover the unpaid balance of a loan by forcing the sale of the collateral.

In running and operating any hospitality business takes ample amounts of research and marketing strategies. From overcoming obstacles in setting prices, taking different approaches in choosing the best prices, relying on psychological pricing, to market intermediaries, many different factors play a role in the selection of the best price for each product. Taking a closer look into each one allows businesses to select prices for their services that will generate and create a profitable company.

From a funding and capital sourcing perspective, a more knowledgeable, more experienced hotel owner class was beginning to emerge, which will have a greater influence on the future growth and sustainability of the sector