A STUDY OF HOTELS’ FINANCIAL PERFORMANCE FOR INTRODUCTION OF AN INTER-HOTEL COMPARISON SCHEME IN YOLA, ADAMAWA STATE NIGERIA

Abstract

One way of achieving classification of hotels is by comparative analysis of major operating statistics. Comparative analysis of hotel operating statistics for the purpose of classification is achieved through inter-hotel comparison scheme. Inter- hotel comparison is a system where hotels of comparable standards agree that their performance statistics be collected, analyzed and compared by a center so that each hotel is able to assess its performance in relation to other hotels in the scheme. Hotels in Yola lack this medium. The purpose of this study was to determine the perception and willingness of hotels to participate in a comparative scheme with a view to improving on their service quality delivery and financial activities. Three ratios each of profitability and cost factors were investigated in twelve (12) hotels. Raw figures supplied by the hotels were processed into ratios through the process of common size analysis. It was found out that the hotels have understanding about the importance of inter-hotel comparison and the resources to participate in such scheme. A trial analysis of available ratios showed that some of the hotels were actually doing better than others. This study recommends a functional inter-firm comparison program for hotels in Yola as it will help the hotels evaluate and improve on their financial performance while at the same time providing government an avenue for economic policy formulation