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Every activity of an organization is reflected in its financial statements. Financial management deals with activities which have financial implications. The very objective of financial management is to maximize the wealth of the shareholders by maximizing the value of the firm. It controls the business activities of the company and has a high impact on the company's strategy. The roles of financial management are to control costs, ensure cash flows, control the funds available to get the resources needed for the business's wealth, and control the profitability levels. The key issues in global hospitality industry for management include the impact of new technology, a lack of availability of capital investment and increasing concern for the future of the environment. The hotel financial manager has emerged as being of major importance in maintaining the profitability of the unit and the company and plays an increasingly influential role as part of the management team. They must now identify the challenges for the future within their own working environment and develop the technological and personal skills necessary to manage in this new age. Finance managers must hold department leaders accountable for achieving revenue targets and controlling expenses. Each month, the finance manager consolidates accounting information and updates the budget. When a line-item variance in revenue or expense exceeds the acceptable tolerance, the finance manager engages with the responsible department head to gain a better understanding on the cause of the variance. In most cases, the finance manager will require action plans to resolve the variance for future periods. In this way, all hotel managers are needed to have a good grasp of the financial aspects of running a hotel.
This book deals with the body of knowledge in both the theoretical and practical perspectives of hospitality financial management, including hospitality financing, investing, dividend policy, financial condition, and performance. In this edition, you will learn topics such as financial markets and raising financial capital, a brief review of financial statements, financial statement analysis, and risk and value in the hospitality firm plus much more. It provides a straightforward approach to assist the hospitality manager efficiently analyze hospitality industry financial statements; prepare accurate business forecasts, strategic pricing decisions, and effective cost-control systems.
This novel edition provides comprehensive information to students and practitioners in the field and assists for further in???????depth research to extend the literature and prompt better financial decision making for practitioners.
