Evaluation of Hotel Performance Based on Financial Management, Marketing and Operations and Management Practices Issues: Case Study on Erbil International Hotel

Abstract

This Erbil International Hotel plays on important in Iraq tourism industry. It offers many facilities and services for travelers and tourists from domestic and international market. Erbil International Hotel has ten storey and attractive building located in the heart of the city of Erbil (the capital city of Kurdistan Region). It is a private ownership hotel. The main revenues of Erbil International are room, food and beverage.  Its main investment had in property, workforces, and equipment’s. From the financial performance of Erbil International Hotel from 2005 to 2010, it indicates that total revenue of the Hotel was not enough to compensate the rising cost. Besides, the hotel has high fixed cost in the salaries and wages, cost of utilities and depreciations are the major items that have affected on costs and low profit margin. For five consecutive years from 2006 to 2010, the hotel has suffered a loss. This was due to the shortage of liquidity and low profit margin. The management failed to operate and managed the hotel efficiently based on the financial management, marketing issue and operations and management practices issues. Thus, this consultation project intends to provide Erbil International hotel with plans and strategies after carefully examine and analyze their financial performance problems by using financial ratio analysis, 4P’s analysis, SWOT analysis, internal and external factors analysis summary, and TOWS matrix.

Keywords: Hotel performance, financial management, marketing issue and operations and management practices issues