Financial and Management Accounting Essay Example | Topics and Well Written Essays - 3000 words

Financial and Management Accounting - Essay ExampleThe franchised hotels performed amazingly in the recent stratum. The occupancy levels are found to be 72% for the whole previous year and the occupancy levels in the second half of the previous year the rate was 79% (DeFond and Hung, 2003). There was a press down occupancy on Sundays. The average of ADR was observed to be 34 in the financial year and it further increased in the second half of the year to 36.Intercontinental (IHG) group is a global hotel company whose objective is to create excellent hotels that guests find irresistible. The group is found to hold a strong grocery position with increasing market share and growth. Total gross taxation of IHGs has increased to 6% and is observed to be $23 billion. The groups revenue has decreased to 2% that is $1858 million (Nissim and Penman, 2001). The operating profit of the group has decreased by 3% and is observed to be $651 million. There has been 10% increase in dividend of t he group as compared to previous year. The key performance indicators (KPI) examine the groups success in achieving growth strategy. KPIs such as the engagement room supply has increased to 710,295, growth in fee revenues has increased by 6.7% and the total gross revenue from hotels under IHG group has increased to $22 billion. The system contribution to revenue has also elevated by 71% in the current year (Carslaw and Mills, 2006).Easy Hotels owned hotel rooms have mount in the past three years and the revenue also has gradually increased. The hotel group has implemented key marketing initiatives with digital and customer service steering and is successfully competing with other hotels (Lewellen, 2004). In spite of such performance, the company is facing the threat of increasing competition and oversupply of identical accommodation types within a city. The hotel is also facing operating risks such as increase in operating costs due to inflation (Feng and Wang, 2000). The hotel em ployed the opportunities to create extended depot