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A hotel financial report lists income and expenses for the last fiscal period, often issued annually to shareholders. It includes a statement of financial position, profit and loss statement, equity changes, and statement of cash flows. Publicly owned hotels often include an advertisement section. Private hotels may omit this section.
A hotel financial report is a document that lists information about the hotel’s income and expenses for the last fiscal period. Since these reports are usually issued annually, they are also known as annual reports, as well as financial statements or account statements. These reports are often issued to shareholders and are very common in publicly owned hotels; Private hotels may publish a hotel financial report, but often see less circulation. The overall content of the report varies based on several factors, but most of them have a detailed breakdown of income and expenses compared to previous years.
The average hotel financial report can be divided into four or five main parts. Publicly available reports will have a section that basically reads like an advertisement for the hotel. It will say how wonderful everything is and minimize any negative aspects of the previous year. These sections will usually have small data, such as the number of guests who stayed at the hotel during the year, but this data is usually more for entertainment than business purposes. A private hotel financial report often omits this section.
The statement of financial position is usually the first major part of the report. This section is a thumbnail showing the basics of the hotel’s financial situation. Summarize assets, debts, dividends, etc. These figures are usually placed next to the figures for previous years. This allows readers to see if a general trend is developing.
The next common part of a hotel financial report is the Statement of Comprehensive Income, often referred to as the Profit and Loss Statement. In many ways, this is the same information in the statement of financial position; It is much more detailed. When the summary only shows one number, this section breaks that number down into its constituent parts. This shows exactly where money is coming in and going out of the hotel.
A statement on equity changes follows. This part talks directly about the net worth in the hotel and what caused it to go up or down during the period. This is the section that often explains why shareholders made or lost money from the hotel during the year. This section will generally give the value of the final dividend for stock payments.
The last section is the statement of cash flows. This part of the hotel’s financial report talks about money spent internally with the hotel. If money or assets are shuffled around as needed within the organization, this section will show when and why. This part of the financial statement also breaks down any internal reorganizations that may have occurred, which did not have an overall impact on profit or loss.
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