Journal of Hospitality Financial Management: Volume 16, Issue 1
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AHFME Academic Member 2006 Total Annual Earnings Survey
Schmidgall, Raymond S.
This study was conducted to determine the 2006 annual earnings of hospitality financial management educators. Fifty percent of AHFME’s members affiliated with educational institutions responded. Annual base salaries ranged from $45,000 to $175,000. The lowest paid member is an instructor while the highest paid member is a full professor. Most respondents supplement their base salaries by both teaching during summer school and consulting. The total annual earnings of members ranged from $45,000 to $260,500. Hospitality financial management educators appear to be more highly compensated than the average college professors.
Are Luxury Hotels Satisfied With the Quality of Banking Services in Northern Cyprus?
Şafakli, Okan Veli; Özdeşer, Hüseyin
Tourism sector is one of the locomotive sectors in economy of the TRNC (Turkish Republic of North Cyprus). Even though, education sector plays a major role in the economy still it did not take the locomotive position of the Tourism sector. Due to this reality, the tourism institutions in TRNC are the main consumers of the banking sector. But, for the time being, the banking sector is not serving at the required level of quality for the tourism institutions. The study searched, how the luxury hotels as the dominant section of the tourism sector, identify the bank service quality. As a result of this study, it is seen that; the services provided by the banks are not satisfying the responsiveness, assurance, and empathy needs of the luxury hotels in TRNC.
Does Prior Accounting Knowledge matter? Analysis of Educational Effectiveness of a Finance Course for Hospitality Students
Hara, Tadayuki
While most of hospitality Management Schools and colleges require students to take accounting courses, not all the programs require them to take finance courses, which may be otherwise offered as elective courses. Even though some commonalities and associations are assumed between accounting courses and finance courses, not much quantitative verification of such allegations have been made in a hospitality educational setting. We do not know for sure whether a level of a student’s knowledge of and prior exposure to accounting would actually make a difference in their finance courses. We verify whether there are any links between a student’s proficiency in accounting and his/her proficiency in finance. It would be beneficial for the school to check whether the variances of skill levels in several key areas among students exists at the beginning of the finance course, and if they exist, to check whether such variances would widen or shrink at the end of the course. The data have been collected from all the sections of required hospitality finance course for seniors (HFT4462) and for graduate students (HFT6477) over six semesters, starting from spring of 2006 until Fall of 2007, including Summer sessions. Maximum number of students for senior course was mostly 45, and for graduate course it was 20. There were usually 2 sections of senior courses and one section of graduate course offered concurrently in one semester. Descriptive statistics are shown above. Further analysis shows evidences to some research questions. Variances existed before the course, and those variances appear to decrease after the class, though not for all the areas. Students’ confidence in accounting surely helps them navigate through finance but there appear to be some other explanations for students’ success in finance courses.
More Marketing Expenditures, Better Hotel Financial Performance?
Hua, Nan; O'Neil, John; Mattila, Anna S.
This study employs hotel property level data provided by Smith Travel Research (STR) to explore the effect of marketing expenditures on future financial performance. Four principal conclusions can be drawn based on our findings: 1) the marginal impact of marketing expense on hotel financial performance one year ahead is decreasing; 2) property level gross operating profit, net operating income, and revenue in the hotel industry are persistent, indicating these financial performance measures have high prediction power from one year to the following year; 3) decomposing gross operating profit, net operating income, and revenue into relevant individual components, respectively, provides incremental prediction power; and 4) other expenses have a negative impact on hotel profit, corroborating previous research findings.
Private Equity and Lodging Firm Stock Values: Is Beauty in the Eye of the Beholder?
Madanoglu, Melih; Karadag, Ersem
Over the last five years, the hospitality industry has witnessed an exceptional level of transaction activity, changes in hotel ownership, and new management structure. There is a common belief that the combination of low interest rates, depressed stock prices, and rising corporate profits created ideal conditions for private equity firms to flourish. This study argues why publicly traded lodging companies became the targets for private equity firms and also discusses why private equity firms place a higher value on hotel firms that possess strong brands and higher degree of intangible assets. On one hand, some scholars claim that private equity funds invest in hotel real estate as a financial asset and the main reason of investment is to sell the hotel properties for a higher price in the future. Others contend that the market is completely out of touch with economic reality and unlimited funds in the market are seeking a safe home. This article did not offer a conclusion for the hotel valuation argument but rather it shed some light into the current phenomenon of private equity. It seems that at this stage it is not feasible to use inferential statistical analysis to uncover the reasons why hotel companies became targets of private equity buyouts. However, by using some of the extant industry body of knowledge the researchers were able to develop two key propositions that will hopefully spur the research in this area. The authors conclude that more insight is needed to understand the current investment phenomenon brought into the scene by private equity firms over the last five years.