Round 3 Analysis-Goodness

Goodness

Gratitude Aspiration Courage Perseverance

Profitability, $

EBIT % 20 21 17 13 8

Net income 31224 35018 27044 18166 12111

Gross Operating
Profit Per
25 31 27 20 23
Available Room
(GOPPAR)

GOP conversion
-205 10 19 15 114
(%)

Cumulative
119584 118887 118204 101642 69314
Earnings

EBIT means earning before interest and taxes. We know that net profit is the difference between
total incomes and total expenses. So, in the company, we deduct both interest and expenses.
So when we look at the EBIT% of team goodness, its only 8% and is very low when compared to
other teams. That means that all the other teams getting more returns from their operation.
GOPPAR, or gross operating profit per available room, is defined as total gross operating profit
(GOP) per available room per day, where GOP is equal to total revenue less the total departmental
and operating expenses. it does provide a clear indication of a hotels profit potentials.
Furthermore, GOPPAR can, in most cases, better reflect the profitability, managements
efficiency, and underlying value of hotel properties, as a whole.
When we look at the below figures, the ADR of Goodness is 95,whereas the cost per occupied
room per
 Gratitude Aspiration Courage Perseverance Goodness

Revenues, $

Average Daily Rate

94 107 99 113 97
(ADR) of Rooms Sold

Revenue Per Available

71 70 68 69 72
Room (RevPAR)

Total revenue per

occupied room per 108 122 110 127 111
night (RevPOR)

Revenue per
22 24 29 27 31
restaurant customer

Goodness
Gratitude Aspiration Courage Perseverance

Costs

Hotel costs per

available room per 53 46 50 54 56
night

Hotel costs per

occupied room per 70 70 73 88 75
night

Restaurant costs per

18 22 25 26 36
restaurant customer
Night is 75. So the cost of room per occupied room is very high when compared to the low ADR.
However, the occupancy percentage of hotel at this low period is very high when compared to
other teams, also helped hotel in acquiring largest market share.

Gratitude Aspiration Courage Perseverance Goodness

Restaurant
Profitability

Revenue 69 285 92 767 93 599 63 839 65 768

Costs 57 384 86 249 81 235 60 543 76 598

Contribution 11 902 6 518 12 364 3 295 -10 830

When we look at the Restaurant profitability, the management team of team Goodness have taken
various wrong decisions. The revenue which restaurant is generating is less than the costs incurred.
This resulted in the contribution of -10,830 which is not sweet.

Gratitude Aspiration Courage Perseverance Goodness

Contribution per
unit ratios

-699
Contribution per staff member 1 133 425 823 263

Contribution per customer 3.75 1.67 3.79 1.40 -5.09

Contribution per seat 198 81 155 33 -181

Also when we look at the figures of contribution per staff member is -699. This is because of the
overstaffing the restaurant has done. This has also resulted into negative contribution per customer
and contribution per seat.
 Goodness
Total by function
(excluding Gratitude Aspiration Courage Perseverance
managers)

Desk 12.0 5.9 8.0 7.2 14.8

Housekeeping 10.0 13.0 15.6 15.5 14.0

Kitchen 7.0 10.8 9.0 6.9 7.0

Dininghall 3.5 4.5 6.0 5.6 8.5

Maintenance 3.0 3.0 3.0 3.0 3.0

As we interpret from the above figures team goodness have high number of staffing especially in
front desk and dining hall. This area needs to be reconsidered and management should re-think if
they require so much of staffing in these two areas or not.

Goodness
Total by function
Gratitude Aspiration Courage Perseverance
(excluding managers)

Personnel costs 90 276 79 864 87 984 88 650 102 228

Outsourcing costs (HK,

breakfasts, 15 125 17 025 17 371 13 621 15 054
improvements)

Purchases 31 870 55 896 52 750 34 607 46 108

Other variable costs 17 048 14 976 14 022 13 822 16 365

Other fixed costs 13 500 13 500 13 500 23 500 14 000

193 754
Total operating costs 167 819 181 262 185 627 174 200
Also the operating cost of team goodness is very high. From the above figures it is very evident
that hotel is spending a lot of money in its employees. Even the hotel have one of the highest
purchasing cost and other variable costs. The hotel need to look in these areas and should come up
with solutions to reduce these costs.

While looking at the satisfaction level the hotel seems to be doing good in both customer and
employees case.