A Comparative Study on Financial Performance of Hotel Industry in Pakistan (Sarena Hotel & Marriott Hotel)

Abstract

The aim of this research is to analyse the financial performance of two big names of Hotel industry of Pakistan (Serena Hotel and Marriott Hotel). Specifically, the study seeks to analyse both hotels using financial ratios. Firstly, a review of the literature on the financial performance of Hotel Industry and use of Ratio analysis is done in order to understand its use for analysis. Financial statements of Hotels are mainly used to conduct this research. Overall, the findings show that both hotels have performed better in 2012 than previous years. It is also seen that both hotels are not maintaining sufficient assets with respect to liabilities (Liquidity ratios). Serena’s profit margin ratio is higher than that of Marriott Hotel. Given the importance of understanding the ratio analysis with need to fill the niche of research on the topic in our country; this study is of great importance to both academia and practitioners in the Hotel Industry of Pakistan.

Keywords:  Financial Statements, Ratio analysis, Liquidity ratio, Profit margin ratio