managerial accounting report for Hilton
... Introduction Hilton Hotels Corporation is a pre-eminent international company. ... Its portfolio includes many of the world’s best known brands, such as Hilton, Conrad, Doubletree, Embassy Suites, Hampton Inn, as well as many of the most famous hotels in the world. ... For more than 80 years, Hilton has been the first choice of world travellers. ... economic recession which impacted the demand for both business and leisure travel, the high costs of energy and healthcare, and most importantly, the horrific events of September 11 which leads to the unprecedented tragedy on the tourism industry have put Hilton to a very challenging situation if it is going to succeed in its business by adjusting to the dramatic environment. In this report, we are going to evaluate the performance of Hilton in the year 2000 and 2001 and its prospects in comparison with that of Queens Moat Hotel in the same industry. ... Analysing the performance and prospects of Hilton 2. ... The ROCE of Hilton increased from 6. ... Hilton also experienced a dramatic decrease in ROE, falling from 30. ... 56% in 2001, because Hilton obtained a net loss on asset dispositions of $44 million in 2001, primarily due to the sale of the Red Lion hotel chain, compared to a net gain of $32 million in 2000 from the sale of marketable securities . It is noticed from above that the profitability performance of Hilton Group is declining. ... What is important to notice is that the quality of profit ratio of Hilton is below 100% while that of Queens Moat hotel is in excess of 100%. The main factor contributes to this situation might be that Hilton Group is a truly international cooperation which makes it much more vulnerable to the severe impact of September 11th events than the Queens Moat hotel who only operates its business in United Kingdom, Germany and Netherlands. ... 2 Analysis of Growth Year 2000 was a good year to Hilton who enjoyed an enormous growth rate of 60. ... Continued high demand for hotel rooms in many major US cities and little competition in the same markets where Hilton operates also contributed to huge increase in revenue. However, because of the September 11th terrorist attacks in 2001, Hilton suffered from a negative growth rate of -11. ... In addition, as for the case of Hilton, because they currently have two revolving credit facilities, the total revolving debt capacity of approximately $730 million was available to them at December 31, 2001, which further enhanced their ability to pay the short-term creditors.