Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2017. / The hospitality industry has undergone far-reaching changes based on discussions held with industry representatives. Due to the rapid development of accounting systems there is an over reliance on systems to control costs. This influences the accounting skills of department managers, which are insufficient to manage their departments effectively. The research investigates the role and relevance of accounting skills amongst department managers of selected hotels in Cape Town. The research methodology employed a semi-structured questionnaire that was used to collect quantitative and qualitative data. The focus was on selected three-star (3) and five-star (5) hotels within Cape Town. The findings were drawn from a small sample of 45 hotels, among which 35 participants from the 45 hotels completed the questionnaire. A review of literature identified a strong need for department managers to have accounting skills, but there is limited evidence whether they actually hold these skills. Statistical analysis of the responses revealed that less than 50% of the participants were confident that they had sufficient accounting skills to manage their departments effectively. Two key issues were identified (1) the benefits of accounting skills (2) the need for formal accounting skills training. If the findings and concerns of the lack of accounting skills are not addressed it will affect cost control, costs will increase and profitability will be negatively affected. Recommendations include more interaction and forging links between academia and industry. A challenge for hospitality academics is review current financial management training provided and introduces mentorship programmes to develop the accounting skills of department managers.

Hotel investments, which have far-reaching impact on hotel companies' long term financial health, will continue to be the primary mode for hotel companies' survival and growth. However, top management has been facing a changing industry and investment community to which they are required to adapt. Consequently, the old fashioned gut-feeling types of decision making are no longer appropriate for sound hotel investments. It is the primary objective of this study to develop a model for hotel investment risk assessment and appropriate cost of capital estimation in the middle-price and economy hotel segments for the investment's capital budgeting purposes. The hotel investment risk assessment and cost of capital estimation model research was conducted using the focus group interview, the Delphi Technique, and the case study. As exploratory research, the focus group interview was conducted with the participation of hotel executives and general managers, hotel owners, and bank lenders from the Virginia area. Key investment risk factors were identified from the opinions of this panel, which represented different perspectives and needs. The summary findings laid out the foundation of the Delphi Technique survey_ The Delphi survey was conducted among hotel general managers, hotel executives, and hotel owners within three hotel chains in Virginia, Maryland and Delaware. They consisted of a professional panel of 19 members. The first task accomplished by the panel was to further validate the key risk factor profile developed by the focus group interview. The second task was to rate the level of influence of the identified factors using a five point likert-type scale (5=very influential, 1 = little influential). Three rounds of the survey allowed the panel members to achieve a consensus on the issues. A total of 36 hotel key investment risk factors in the middle-priced and economy segments were agreed to be included in the investment risk assessment framework. In addition, a ranking of all factors was produced based on each factor's importance and influence level. All the factors received a higher than average (rank scale 3) ranking. The empirical finding provided a valuable framework for the subjective risk assessment in the cost of capital estimation model. / Master of Science

The central focus of this study is to provide an empirical explanation regarding the efficacy of the managerial expectation formation process as it contributes to the understanding of discounting room rates as a rational strategic phenomenon in the lodging industry. The study assesses the nature of the relationship between discounting hotel room rates and hotel financial performance when considering the non-stationary conditions of a time series data set. The study was rooted in an operational based perspective with regard to the challenges presented by the perishable nature of room night sales - the loss of which may impact a manager’s fundamental responsibility: to generate maximum revenue from the existing hotel room capacity. Of critical importance to this study is whether the incremental use of discounting room rates could work to correct for temporal periods of decreased demand and thus increase shortterm hotel financial performance. There is limited research regarding the empirical relationship between discounting room rates and hotel financial performance, as well as the internal process that a hotel manager uses to determine an accurate room rate that corresponds to seasonal lodging market demand conditions. An empirical foundation for this practice is lacking in the extant hospitality literature. Literature reveals that, although the lodging industry commonly incorporates discounting as a pricing strategy, recent research implies that high occupancy levels at discounted room rates do not necessarily lead to an increase in hotel financial performance. The contrast then between what is practiced and the recommendations from pricing strategy studies has led to lack of consistent agreement in current lodging literature regarding how discounting of hotel room rates relates to hotel financial performance. This study is at the forefront in its use of the methodological procedures that support a theoretical framework iv capable of providing explanations regarding managers’ internal process of discounting as an effective pricing strategy that could compensate for times of decreased room demand. An econometric case study research design was used in conjunction with a cointegration analysis and an error correction model (none of which are otherwise appropriated as assessment tools in the lodging industry). These applications provide a means to understand the expectation formation process of managers’ room price setting strategies. They also assess the empirical nature of the relationship between the variables by accounting for the erratic variations of room demand over time as induced by random error fluctuations. A non-deterministic system was assumed and supported through the analysis of the stationarity conditions of the time series data set under investigation. The distinguishing characteristics of a dynamic system that are recognized as traits of the lodging industry are further supported by the theoretical framework of the rational expectations theory and the cobweb model. The results of the study are based on secondary financial data sets that were provided by a midscale independently owned leisure hotel in the Orlando, FL market and that is located on Walt Disney World property. The results of this study delineate from the current normative economic recommendation based on descriptive research that claims discounting hotel room rates does not increase hotel financial performance. The current study does not draw an association between the variables from the presupposition of a deterministic marketplace, nor does it recommend to managers to hold a constant average daily rate over time. Based on the findings of the statistical procedures performed and the theoretical framework, the study contends that previous research may have incorrectly modeled room price expectations; elected to use inappropriate statistical tests; and, therefore, may have entertained misleading conclusions regarding the relationship between discounting of hotel room rates and hotel financial performance. v Through use of an error correction model, the major findings of this study imply several concepts: that residuals may be treated as a variable within the study’s model in order to better understand the short run dynamics that may lead to equilibrium correcting room price positions over the long run of time; that discounting room rates works in the short run; and, that managers use a rational price setting strategy to set future room rates. All of the aforementioned concepts fall within accordance of the rational expectations theory. The study concludes that while the constant room rate adjustments observed in the lodging industry may display what appears to be a random structure that deviates from the expected systematic, or stable, financial performance of a hotel over time, the deviations in performance are actually a rhythmic synthesized process of market information from past and current times. Hence, hotel managers appear to be using a backward looking model to forwardly project optimal room rates to match uncertain consumer demand. The empirical assessment employed in this study supports this determination.

The major purpose of this study was to develop a model to analyze designated variables inherent in hotel/motel operations and to determine their interrelationships and effects on profitability measures. An additional purpose was to determine the regression equations for predicting future profitability in the hotels/motels used in this study. A final analysis conducted in this study was a comparison of highly profitable properties with marginally profitable or losing properties to determine which independent variables' means were significantly different. The four profitability measures, expressed as ratios, used in this study were: (a) Consolidated Operating Margin, (b) Consolidated Return on Assets, (c) Rooms Department Operating Margin, and (d) Restaurant Operating Margin. Twenty-six variables were hypothesized as predicting or having a significant effect on profitability. These included: (a) Room Rate, (b) Occupancy Rate, (c) Marketshare Percentage, (d) Administrative and General Expense, (e) Labor Cost for the Rooms Department, (f) Rooms Department Advertising, (g) Property Tax, (h) Restaurant Total Expense, (i) Restaurant Other Revenue, (j) Food Cost, (k) Beverage Cost, (1) Food and Beverage Labor Cost, (m) Food and Beverage Advertising, (n) Room Sales as a Percent of Consolidated Sales, (o) Depreciation, (p) Interest Expense, (q) Unemployment Percentage, (r) Chain Affiliation, (s) Location of the Property (highway, center city, suburban and airport), (t) Age of the Property, and (u) Properties that were Renovated Compared to Properties that were not Renovated. The remaining variables were combinations of or modifications on the previously mentioned variables. Data analyses were based on information collected in 40 hotels/motels in Virginia, Maryland, Pennsylvania, and South Carolina. All operations selected for this study were mid-priced hotels/motels affiliated with a national hotel chain. The data were collected from fiscal year 1982 and fiscal year 1983 accounting information and public records. Occupancy Rate, Rooms Department Labor Cost, Administrative and General Expense, Room Sales as a percentage of Total Sales and Food Cost proved to have substantial influence on profit. These variables had high correlations with the profitability measures, most frequently fit the regression models, and showed significant differences between highly profitable operations and the marginally profitable or losing operations. / Ph. D.

The commercial value for Bed and Breakfasts and Country Inns did not kept pace with other lodging establishments. Lodging real estate investment trusts (REITs) grew in the 1990's by acquiring hotels and motels but not the smaller Inns. This study investigated what sale terms and conditions an Inn owner would sell their property to a REIT. The study examined what conditions an innkeeper would manage the property for the REIT once the sale was closed. This study concluded that a REIT was not a feasible exit strategy for Inn owners.

Even though many organizations invest in IT, the value that IT is expected to contribute is still not clearly understood. Researchers agree that IT has become a crucial element to business operations and business existence. However, while there is continued investment in new information technologies and systems, organizations are not certain whether significant value is derived from IT investments. The failure to realize good return on IT investments is ascribed to a lack of understanding of IT by organizations and also the failure by organizations to align IT strategies with business strategies. The lack of alignment leads to the failure to match the right IT to the correct task, which leads to the poor application of systems and poor allocation of human resources to tasks. Therefore, organizations such as Small and Medium Enterprises (SMEs) in particular Boutique Hotels, are noted for their failure to derive better IT value. Their unique characteristics are understood to be influential in the way IT is used and managed by affecting the delivery of value from technology. In order to enable Boutique Hotels to derive more value from IT, the IT governance frameworks, Val IT and CobiT (ITGI, 2007), were examined as these integrate good practices to ensure that an organization‘s IT supports the business objectives. In addition, the Task Technology Fit (TTF) (Goodhue and Thompson, 1995) and Gap Analysis (Heeks, 2001) theories were highlighted as these prescribe the platform ideal for more value to be derived from IT. The current status of Boutique Hotels in Buffalo City was assessed through the use of questionnaires and interviews. The collected data was analyzed and resulted in the development of a model that can be used by Boutique Hotels in order to derive more value from IT and to maximize the use of IT.

A descriptive survey was sent to 434 food service and lodging companies May, June, and August of 1983. The objective of this survey was to investigate and assess current cash management practices. A response rate of 21.89% was received. After the surveys were returned, results were analyzed in two ways: by frequency distribution tables and hypotheses testing. The frequency distribution tables described the results of the data. Hypotheses testing described the relationship between the independent variables, which are; the percent of assets held as cash, dollar value of net corporate assets, and level of revenue, and the dependent variables, which are prescriptive cash management techniques. Survey results concluded that the larger the firm, as measured by asset base and level of revenue, the more sophisticated its cash management practices. Larger firms, as measured by asset base and level of revenue, more often follow prescriptive cash management practices than smaller firms. Based on the conclusions of the Survey of Cash Management, it is recommended that small firms follow theoretical cash management practices. / M.S.

Thesis submitted in fulfillment of the requirements for the degree Master of Technology: Tourism and Hospitality Management Faculty of Business Cape Peninsula University of Technology / Environmental management is a new phenomenon, one which affects not only the way that individuals live their lives today but also how businesses operate. Environmental policies cannot simply be introduced, especially in the hospitality industry. Although the industry thrives off customer satisfaction, like any other business it relies on making a profit each financial year for it to stay operational. This research was undertaken to determine if implementing an environmental policy has any effect on the financial statements of a select group of hotels within the Cape Metropole. In answering this question, the researcher was able to establish what the relationship between implementing environmental management policies was and the effect it has on the financial side of a specific group of hotels. “Hotels are also being pressured to move towards triple bottom line reporting (3bl), involving the relationship between profit, people, and planet” (Kleindorfer, Singhal & Van Wassenhove, 2005:482). “To encourage an environmentally more responsible behavior in the hotel sector, it was necessary to demonstrate the cost savings of these practices” (Bohdanowicz, 2005:188-205). The research methodology consisted of both quantitative and qualitative approaches. Interviews were conducted with participants from key organizations, and with people who were linked to the hotel industry and environmental management. These included government organizations, SARS, which deals with all tax-related laws in South Africa, Eskom, the country’s energy providing company, as well as with a travel agency which deals with hotel bookings on both a local and international level. A focus group was also undertaken to ensure that the problems being researched were discussed fully by likeminded people, and by those who were directly involved with carrying out these policies in hotels. Questionnaires were sent to all the four- and five-star hotels within the Cape Metropole to assess the current situation relating to environmental management and their financial profit or loss. The research determined that implementing environmental policies has both a positive and negative effect on financial statements, thus proving that there is a direct link between the two. The findings clearly showed that environmental policies, whilst good for the surroundings and the environment, can be financially draining for a business if not properly planned prior to implementation. With correct research, however, this can be done in the correct manner, with results that are positive for both the environment and for the company’s financial statements.

Thesis (MBA.) -- University of Limpopo, 2022 / This research aimed to find out if there is a link between government financial assistance to small-scale hotels and their financial performance in Limpopo province, South Africa. The objectives of the study is to examine the impact of government financial assistance on three financial performance measures, namely, sales turnover, net profits and net asset growth of the small scale-hotels. The research used a quantitative approach. Secondary panel data was collected from the financial statements of six small-scale hotels from 2015 to 2018. Data were analyzed using multiple regression model to arrive at the conclusion. The findings from the data analysis reveal that government financial assistance positively and significantly impact the growth in sales turnover and net profits of the small-scale hotels. Furthermore, the findings show that there is no significant relationship between government financial assistance and net asset growth of small scale hotels. The findings of this research have practical implications for the companies operating in the small-scale hotel sector. In addition, the findings of this study is important for the policy makers, as it highlights the policy gaps existing in the sector. The study recommends further research to examine the relationship between government financial assistance to small-scale hotels and their financial performance.