[accagunner]

Hi Trephena,
I really need your help.
I’ve been able to squeeze only 9 ratios , 6 financial and 3 hotel related, but now I’m worried that my ratios are few in “quantity”, and im thinking whether to merge my 3 hotel ratios into one and do another financial ratio but then I’d have total of 8 ratios only. Is having few ratios in quantity a negative?
Kindly help me.
Best Regards

[accagunner]

Hi Trephena,

Due to marriott’s policy of repurchasing shares its equity was negative in 2015 and 2014 due to high treasury cost.

So when i’m calculating gearing the ratio is negative, i’m not sure how to go forward with this kindly advise.

Best Regards.

[accagunner]

Thanks @trephena for your reply.

Sorry i should have clarified they are key ratios/KPIs in hotel industry RevPAR=revenue per available room and ADR= average daily rate.

I’m facing another issue I’m confused regarding the cost reimbursement figure.

For hotels that Marriott manages for the owners, they reimburse marriott costs incurred these are shown in revenue and the same figure is shown as cost and deducted from the revenue to get operating income.

Even though this does affect operating income but it does affect operating margin ratio as the size of the numerator and denominator is changing.

So my question is should i analyze this figure as it makes 90% of the revenue and costs and for all three years and for Net profit and operating profit margin this would end up the reason.

I had decided that i would just mention it a little in reason for sales increase but ignore its impact on OP and NP ratios,but im worried that i might be wrong.

Best Regards.

[accagunner]

Hi.
As RevPAR= Occupancy Rate x ADR so if i have already analyzed ADR and occupancy rate,how should i analyze RevPAR as i will not have anything new to say.
Best Regards.

[accagunner]

Hi,

The results i am getting for Marriott are segregated quarter wise and as we are to analyse the whole year,how am I to project the quarterly reasons of increase/decriease in numbers to the whole year.
Should i just pick out the reason out of the 4 quarters that had the most impact or combine the reasons of the 4 quarters? but that would mean having to reference 4 pages for 1 para.

Best Regards.

[accagunner]

Trephena,

I am facing some issues if you could kindly help me with them.

1)Where can i find a detailed breakdown of the figures found in the the financial statements of the annual report.

2) The figure of cost reimbursement is being shown in the FS of marriott and this figure has been added in revenue and then the same is deducted as cost too.I’m not sure how to interpret this as this figure makes up 90% of the cost and revenue.
Cost Reimbursements: We recognize cost reimbursements from managed, franchised, and licensed properties when we incur the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where we are the employer and also include certain operational and administrative costs as provided for in our contracts with the owners. As these costs have no added markup, the revenue and related expense have no impact on either our operating or net income.

3) Also should i base my RAP on the US sector or the whole group and if i base it on the US sector alone so should I include the the whole group figures or just the US sector .The annual report contains figures of the whole marriott group.

Best Regards.

[accagunner]

Hi,

Can I compare marriott international(the group) vs hilton worldwide(the group)?and will I be able to get sufficient data for hotels?I’m worried that the hotels industry might not have sufficient research material available.

Best Regards.

[Author]

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