Hots System
3.4 Other departments revenue and total hotel net income:
The remaining revenue from other departments contains a small percentage of the total revenue for Victoria Hotel. There is a lack of correlation between the net income and other revenue monthly figures. The other income statistic significant increased since August year 2 and decreased on January in year 3. The peak amount of other revenue was reach $64.127 in year 3 and this can be credited towards a noticeable increase in conferences and events with 48% of guests attended in the hotel on August and increased to 61.8%on November.
3.5 ROCE
ROCE stands for the return on capital employed indicates the efficiency and effectiveness of the resources and capital investments that used by the hotel to make profits (Reid & Smith, 2000). Victoria Hotel’s ROCE in year 1 was undesirable with a number of 2%. In contrast, the ROCE increased by 24% in year 2 and continuing growth to 33.4% by end of year 3. Based on the data, the ROCE was steady increased and will be contributed to the developing of the hotel. Moreover, it indicates the profitability of the hotel is increasing and hotel’s resources are being used effectiveness.
3.7 ADR and Revpar:
Average daily rate (ADR) and revenue per available room (Revpar) allocate revenue to occupied rooms and all rooms in an attempt to see the profitability each room contributes to the hotel. The ADR tells us the average rate occupied rooms were sold for and Revpar tells us how much revenue is allocated to each room in the hotel. The ADR changes from $85.6 to $80.75. The Revpar starts from $15.61 and rises to $51.25 at the end of year 3 and it peaks at July which is $72.98. It increases 3 times during last three years.
3.8 Refurbishment spending and occupancy:
Refurbishment figures are inconsistency, erratic and do not follow a yearly pattern or trend. The majority of refurbishments were level 1 and level 2 that costing from the lowest amount $25.000 to the
The remaining revenue from other departments contains a small percentage of the total revenue for Victoria Hotel. There is a lack of correlation between the net income and other revenue monthly figures. The other income statistic significant increased since August year 2 and decreased on January in year 3. The peak amount of other revenue was reach $64.127 in year 3 and this can be credited towards a noticeable increase in conferences and events with 48% of guests attended in the hotel on August and increased to 61.8%on November.
3.5 ROCE
ROCE stands for the return on capital employed indicates the efficiency and effectiveness of the resources and capital investments that used by the hotel to make profits (Reid & Smith, 2000). Victoria Hotel’s ROCE in year 1 was undesirable with a number of 2%. In contrast, the ROCE increased by 24% in year 2 and continuing growth to 33.4% by end of year 3. Based on the data, the ROCE was steady increased and will be contributed to the developing of the hotel. Moreover, it indicates the profitability of the hotel is increasing and hotel’s resources are being used effectiveness.
3.7 ADR and Revpar:
Average daily rate (ADR) and revenue per available room (Revpar) allocate revenue to occupied rooms and all rooms in an attempt to see the profitability each room contributes to the hotel. The ADR tells us the average rate occupied rooms were sold for and Revpar tells us how much revenue is allocated to each room in the hotel. The ADR changes from $85.6 to $80.75. The Revpar starts from $15.61 and rises to $51.25 at the end of year 3 and it peaks at July which is $72.98. It increases 3 times during last three years.
3.8 Refurbishment spending and occupancy:
Refurbishment figures are inconsistency, erratic and do not follow a yearly pattern or trend. The majority of refurbishments were level 1 and level 2 that costing from the lowest amount $25.000 to the
References: Reid, G. C., & Smith, J. A. (2000). What makes a new business start-up successful? Small Business Economics, 14(3), 165-182. http://search.proquest.com.libraryproxy.griffith.edu.au/docview/220955419?accountid=14543