Robin Reid Lecturer, Financial Accounting SHMS, Caux
Each Group must submit a report including ALL of the following criteria:
1. FONT: The font must be Times New Roman.
2. COVER PAGE: This should include the Name of the Hotel,
Group members full name and English name (If any) and the Class.
3. CONTENTS PAGE: List the contents of your project (Headings, Sub – Headings) and the page numbers they appear on.
4. REFERENCING: Harvard referencing to be applied.
5. MINIMUM WORD COUNT: 1,500 Words
NO HAND WRITTEN REPORT WILL BE ACCEPTED; REPORTS MUST BE TYPED. MARKS WILL ALSO BE DEDUCTED FOR LATE SUBMISSION.
Project Overview: Your team has been contacted by a nearby hotel to help the management assess its performance. The current management team took the hotel over in January Year 2. We’represently at the end of Year 2.
Each team of 4/5 students will receive the major financial statements of a hospitality operation for Year 1 and Year 2. You will also be provided with the property’s description, and some background information which will be identical for each team. Only the financial statements will differ from group to group.
EACH HOTEL (GROUP) WILL RECEIVE:
Comparative Income Statements (Year 1 and Year 2) Comparative Balance Sheets (Year 1 and Year 2)
1. Perform a full absolute and % comparative Horizontal and Vertical Analysis of the Balance sheet and Income Statement using the information from Year 2 and Year 1 for the hotel. Please write a small paragraph interpreting the change in Total Assets, Total Liabilities, Owner’s Equity and in Net Profit, based on your calculations. (25%)
2. Prepare Statements of Cash flow as at the end of year 2, using the information from the balance sheet and income statements for years 1 and 2
Write a paragraph (analysis) on the liquidity of the business based on the Statements of Cash Flow and what this means to the stakeholders in the business. (35%)
3. Summarize the financial position and performance achievements for Year 2 and make recommendations to management for the next financial year. Your analysis should consist of examining the following financial classes and include appropriate ratios (40%):
a. Profitability and Return on Investment for shareholders: a. Should the owners be satisfied about the return on investment offered during this year?
b. Was the General Manager able to improve the profit, compared to the previous year and why?
· Operating Performance :
a. By comparing departmental sales and COGS in both income statements is the F&B Manager managing his/her department in an efficient way and why?
b. Similarly, is the Rooms Division Manager managing his/her department in an efficient way?
· Solvency and long-term debt obligations:
a. Has the bank’s risk position improved and how and why? b. What has changed for shareholders?
· Liquidity and cash position:
a. Explain and analyze the short-term cash position of your hotel. What has changed? What are the reasons?
b. Is this company going to be able to face its cash obligations in the short-term? And what may be done in order to improve this?
OVERVIEW OF THE METROPOLITAN HOTEL, VANCOUVER
The Metropolitan Hotel exudes chic West Coast ambience in Vancouver, British Columbia, Canada. Located 2 blocks from Robson Street shops, this hotel is 3 blocks from the theater district and seven blocks from historic Gastown. A Canada Line station a half-block away offers easy access to Vancouver International Airport. Grouse Mountain resort is approximately an hour away.
Diva at the Met, the hotel's elegant, award-winning dining venue, boasts a 600-entry wine list and contemporary Canadian cuisine infused with seasonal regional ingredients. Although the décor showcases marble and original art, the restaurant's aura invites come- as-you-are comfort. Meeting rooms are available and the business center provides office services and a computer workstation with high-speed Internet access. The Metropolitan Hotel provides complimentary wireless Internet access in all public areas, including restaurants. A Feng Shui master designed this hotel with two Foo dogs that guard the hotel's entrance, one that symbolically protects the structure and the other that protects all who dwell within the property. An atrium pool with a spa and lounge chairs captures Vancouver's lingering afternoon light. A poolside fitness center contains free weights, weight machines, cardiovascular equipment and a sauna. This is a smoke-free hotel.
The Metropolitan Hotel features 150 guestrooms and suites offered in a variety of configurations. Accommodations provide contemporary solid-oak furniture. Floor-to-ceiling marble-clad
bathrooms contain separate showers and tubs. Select suites feature winding staircases and balconies with panoramic views. Complimentary wired and wireless high-speed Internet access is available. Rollaway beds are available (surcharge).
WHAT YOU NEED TO KNOW
· ·Extra-person charges may apply and vary depending on hotel policy. Government-issued photo identification and a credit card or cash deposit are required at check-in for incidental charges.
· ·Special requests are subject to availability upon check-in and may incur additional charges. Special requests cannot be guaranteed.
· ·The name on the credit card used at check-in to pay for incidentals must be the primary name on the guestroom reservation.
· ·Pets allowed
· ·Minimum check-in age is: 19
· ·Check-out time is: noon
· ·Check-in time starts at: 3 PM
· ·Parking height restrictions apply
· ·MasterCard, Visa, American Express
· ·Diners Club
· ·Reservations are required for massage services and spa treatments.
Reservations can be made by contacting the hotel prior to arrival,
using the contact information on the booking confirmation.
· ·A resort fee is included in the total price displayed.
· ·This property allows pets in specific rooms only. Guests can
request one of these rooms by contacting the property directly, using the contact information on the booking confirmation.
· ·Rooms (all rooms include)
· ·Clock radio
· ·Cribs/infant beds
· ·Electronic/magnetic keys
· ·Electronic check-out
· ·In-room safe
· ·Iron/ironing board
· ·Rollaway/extra beds available
· ·Trouser press
· ·Air conditioning
· ·Bathroom phone
· ·Cable TV service
· ·CD player
· ·City view
· ·Climate control
· ·Coffee/tea maker
· ·Complimentary weekday
· ·Daily housekeeping
· ·Designer toiletries
· ·Extra towels/bedding in
· ·Free local calls
· ·Free Wi-Fi
· ·Free wired high-speed Internet
· ·Hair dryer
· ·Hypo-allergenic bedding
· ·In-room massage
· ·IPod docking station
· ·Multi-line phone
· ·Pay movies
· ·Premium bedding
· ·Premium TV channels
· ·Private bathroom
· ·Separate bathtub and
· ·Sewing kit
· ·Turndown service (on
· ·TV Internet access
· ·Voice mail
· ·Wake-up calls
· ·Window opens
Diva at the Metropolitan - Overlooking the city, this fine-dining restaurant serves breakfast, lunch, dinner, and brunch. Guests can enjoy drinks at the bar.
Some of your assessed work here may involve your working with a small group of your fellow students. Working as a group is a good way of learning about a number of things. It is often a challenging and sometimes frustrating experience. Apart from learning about the subject your group is researching, you will also learn something about the way groups operate.
Here are some pointers to getting the most out of your group work:
1. Approach your task positively and try to seek co-operation and
consensus among group members.
2. It may be helpful to appoint a formal group leader or coordinator
whose job it would be to stimulate discussion and generally
organize what is going on.
3. You probably want to assign various tasks/responsibilities to
individual group members.
4. Set your group deadlines by which tasks should be completed.
Stick to the deadlines.
5. Always be clear about what each group member is to achieve
before your next meeting as a group.
6. Set a clear time, date and place for your next meeting.
7. If someone does not seem to be making a full contribution to the
group’s tasks, discuss it in the group. The person may be finding it difficult to get information, or they may lack confidence about working in a group. By open discussion, such matters usually get resolved.
8. You should enjoy your group work. Always try to attend group meetings and contribute freely and honestly.
What is plagiarism?
Failure to fully reference all your sources could be construed by the marker/tutor as intentional and therefore as plagiarism. Plagiarism is a serious academic offence. It arises when a student is suspected of presenting work undertaken by other people as if it were their own. On the reverse of the assessment receipt form you will see the following statement on plagiarism.
A student is liable to be found guilty of plagiarism if any work presented for individual assessment is found to contain the unacknowledged work of some other person or persons. If this involves deliberate misrepresentation of material as the student’s own in an attempt to deceive the examiners then the offence is very grave indeed.
All sources should be cited and all quotations from the works of other authors clearly identified as such.
If a student’s work is found to contain verbatim (or near verbatim) quotation from the work of other authors (including other students past or present) without clear acknowledgement, then plagiarism has been committed whether or not the student intended to deceive the examiners. This will result in a 0 grade.
This rule also applies to the fraudulent provision of work by anyone for use by a student as his/her own.