The Impact of COVID-19 on the Business Performance and Financial Position in Hotel Industry

The hotel industry, among others, has been affected by the COVID-19 pandemic. The effect of the pandemic can be noticed through financial statements. The aim of the chapter is to analyse how the COVID-19 pandemic has affected the financial position and business performance of the hotels in a tourism-oriented country such is Croatia. The chapter covers the basic information of tourism and the features of the hotel industry in Croatia. The authors represent the sets of national recommendations for dealing with the pandemic in the tourism sector that are enriched with available macroeconomic statistical data. Further, the analysis of financial statements of the five selected hotels is presented. The analysis was done in order to provide comparative analysis of financial results in the pandemic environment (2020) and the previous year (2019). Based on the calculated liquidity, solvency, activity, economy, and profitability ratios, the authors conclude that all the mentioned ratios worsened in 2020 for all the observed hotels.