Assignment Task

 Overview

This assignment is based upon the information given below relating to The Adler Hotel, St Moritz which is in the Swiss Alps. The Glacier Hotel Company Ltd operates 3 hotels across the Alps, although they are a UK based company. They are predominantly leisure hotels but as well as having bars, restaurants, gyms, they also have up to date meeting rooms in the hotels equipped with professional audio-visual equipment.

You are required to study and analyse this information and then produce a 3,000-word report [excluding tables] addressing all the tasks listed below. If there are any aspects of the business which are a cause for concern, these are to be identified and explained in your report. You are to suggest actions to be taken which will address these concerns. If there are aspects of the business which indicate a strength, these must also be identified with an explanation as to why they are strengths. You are expected to cover all tasks to ensure you will be producing evidence for all the learning outcomes.

You are also advised to carry out further analysis using your own initiative and the information you have acquired to show greater understanding of the topic and ensure you achieve the grade your work deserves

Detailed Assignment

1. Produce monthly trading accounts for the rooms division department for the 3 months shown, as well as an overall account. These records should show relevant percentages.

2. Identify any aspects of the business which are a cause for concern.

3. Produce detailed suggestions for how to resolve causes of concerns identified in task 2.

4. Produce a budgeted trading account for the next three months showing how your suggestions will improve the rooms division results. Explain some of the limitations of this budget.

5. Describe the main elements of cost for the rooms division, and how their behaviour is affected by the volume of sales.

6. The meeting rooms are not being used very much and it is believed this is due to the limited range of technical equipment provided for audio visual presentations. The cost of updating each room is £30,000. What advice would you give the General Manager about how to do this and how to fund this expenditure? Provide clear reasons for the guidance you offer explaining the costs and advantages of your proposals.

7. A Travel Firm would like to run hen party weekends for groups of up to 20 guests and is offering to pay £85 per person for 3-day all-inclusive breaks. Would you accept the offer? Explain your answer.

8. Analyse The Adler Hotel Company Ltd overall results using recognised accounting tools.

You are advised to ensure your report covers all the Learning Outcomes and Assessment Criteria in the unit. See the table attached showing how the above questions relate to the Learning Outcomes and Assessment Criteria.

The Adler Hotel Case Study

The hotel is situated on the edge of the town centre and has its own secure car park for guests. Some guests arrive with their ski equipment which the hotel can store for them, but others hire equipment from one of the hire shops in town.

There are 65 bedrooms, 5 family rooms and 3 suites. Most guests book on a bed and breakfast basis, but some also have dinner included in their package.

The Hotel has two restaurants, both of which are open to residents and non-residents. The Glacier Restaurant serves breakfast, light priced at £35; and the Adler is a fine dining à la carte restaurant which is only open in the evening. There is one large bar and lounge area, open to residents and non-residents.

The Glacier Restaurant has been run by Maria, who has worked her way up from starting as a waiter seven years ago. It can seat 100 guests but after serving breakfast it is generally quiet for the rest of the day. It has a 30% staff turnover, mainly young people looking for work experience before moving on.

The Adler seats up to 50 guests and is run by Simon, who has been at the hotel for 25 years. He has maintained the very high standards of food service unchanged for the last ten years and believes his restaurant is the main attraction for guests to stay in the hotel. Most of the staff have been at the hotel for over 5 years. The food ASP is £45.

There are 65 en-suite rooms, of which 50 are doubles and 15 twins. The rack rate is £95 room only per head, and this increases to £105 including breakfast, and £130 including dinner. All rooms are in excellent condition and include Netflix and other cable TV services, and 24-hour room service. The head housekeeper Greta has been at the hotel for 5 years and has 4 assistants and 18 room attendants. She earns £30,000 a year; the assistants earn £22,000 and the room attendants earn £18,000.

The hotel has three meeting rooms which can each hold up 100 people in a theatre layout. All can be provided with a full food and drink service if requested by the client. Charges range from £30 an hour up to £250 for a full day

The Adler Hotel Company Ltd Consolidated Profit and Loss Account

Adler Hotel Rooms Division