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Hospitality Financial Management

Agnes L. DeFranco, Thomas W. Lattin

ISBN: 978-0-470-07341-4 November 2006 384 Pages

Description

Real-world advice for quick retention of the most important business concepts and skills of hospitality finance

Hospitality Financial Management provides a straightforward, practical approach to help the hospitality manager effectively analyze hospitality industry management reports and financial statements; prepare accurate business forecasts, strategic pricing models, and effective cost-control systems; manage working capital; develop and finance growth strategies; perform investment analysis; prepare investment packages; negotiate and structure business deals; and ultimately increase shareholder value and personal wealth.

This comprehensive how-to book includes:

  • Feature Stories—brief histories of famous hospitality leaders highlighting how they have used financial management skills to attain success for their companies and significant financial rewards for themselves
  • Learning Outcomes—a summary of key topics covered in each chapter
  • Finance in Action—scenarios that apply the concepts, skills, and techniques presented in the chapter to real-world situations. A step-by-step solution is provided for each problem to walk the reader through the necessary financial calculations
  • The Real Deal—boxed inserts that emphasize the relevance of the book by linking financial concepts to fun facts associated with situations students either have or will encounter in their everyday lives
  • Concept Checks—case studies that reinforce the materials presented and enable students to practice their analytic and problem-solving skills

Hospitality Financial Management is the perfect book for undergraduate and graduate hospitality management students, hospitality industry managers, and owners of small hospitality businesses.

Preface ix

Acknowledgments xi

1 Finance and the Hospitality Industry 1

Introduction 5

2 Financial Reporting 15

Financial Reporting 17

3 Analyzing Financial Statements 53

Analysis of Financial Statements 56

4 Managing Working Capital and Controlling Cash 91

Managing Working Capital and Controlling Cash 94

5 Growing the Business 112

The Need for Growth 115

Growth Strategies 120

6 Financing Growth 134

The Need for Capital 138

Hotel Financing Trends and Schemes 158

7 The Time Value of Money 177

Concept of Time Value of Money 179

8 Investment Analysis 221

Investment Analysis 223

9 Hospitality Industry Applications of Time Value of Money Concepts and Skills 247

Time Value of Money Applications 250

10 The Investment Package 286

The Need for an Investment Package 289

11 Crafting and Negotiating the Deal 315

The New Business Venture 318

Negotiating Loans with Lenders 325

Negotiating the Equity Investment 331

Negotiating Skills 333

12 Tying It All Together 345

Introduction 348

Hospitality Industry Financial Challenges 348

Financial Reporting 349

Analysis of Financial Statements and Management Reports 350

Managing Working Capital 351

Growing the Business 352

Financing Growth 356

Investment Analysis 357

The Investment Package 360

Crafting and Negotiating the Deal 362

Index 365

  • Includes Feature Stories—brief histories of famous hospitality leaders highlighting how they have used financial management skills to attain success for their companies and significant financial rewards for themselves
  • Provides Learning Outcomes— a summary of key topics covered in each chapter
  • Features Finance in Action scenarios that guide the reader towards applying the concepts, skills, and techniques presented in the chapter to real-world situations. A step-by-step solution is provided for each problem to walk the reader through the necessary financial calculations. 
  • Includes boxed inserts which emphasize the relevance of the book  by  linking financial concepts to fun facts associated with situations students either have or will encounter in their everyday lives
  • Features case studies that reinforce the materials presented and enable students to practice their analytic and problem solving skills