Firms in the hospitality industry have recently witnessed either remarkable losses or profits due to several factors and events. These firms issue income statements and financial documents frequently in order to control their costs and expenses and for other purposes such as appealing to customers, attracting employees and obtaining loans. Recently, a large hotel chain called Diamond Rock witnessed increased profits of about 28 % which is around $22.8 million; this has been due to increased demand towards travel and leisure industry especially after the recession of 2009. The value per share had also increased in this largely profitable firm. Total revenues increased along with net income, real-estate investment as well as revenue per room available. Since this company issues shares also stakeholders were able to enjoy a higher rate per share which would probably increase the dividends earned by these stakeholders at the end of the year. Other than benefiting the stakeholders, this increase in share value would attract investors as Diamond Rock Corp enjoys an improved brand image where it would be safe to invest in the shares reducing risk.
On the contrary, Las Vegas Hilton hotel and casino reported losses of $8.864 million, where demand for gambling declined and so did the total revenues gained from such lifestyle. Not only that, but also it had been avoiding paying back the loan by skipping payments in order to increase liquidity for further investments and needs of reserving its issues in an extremely competitive environment. A possible approach followed by Las Vegas Hilton might be to find a new name and incorporate it with any other major lodging firm but this only comes with several negotiations.
A recent current event in all amusement parks has been preparing for Halloween where tickets’ prices have increased due to consistent demand, gaining a huge amount of profits, Disney Park created special rides and events for Halloween and Six Flags designed a Fright Fest event in this season. Both of which focused on certain social trends and tried to target the interested age group through tailored services.
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ReplyDeleteRides specifically for Halloween are a great way to attract customer and increase sales!
ReplyDelete~Nia McCarthy
It is interesting that Hilton would refuse to pay their loan since they are always pushing for the brand equity to be so high when it comes to spending money wisely. What effect will it have on peoples interest to stay there in future? Not so much on the tourist side, since most people don't pay attention to the news, but the business side, where it is peoples jobs to go and find which hotels are the best to be at.
ReplyDelete-Domenick Cocchiara