An evaluation of cost cutting measures in the hotel industry with a view on two Nordic hotels

Abstract

The thesis aims to review two hotels in the Nordics operated by the Dutch Hotel Group and review their cost cutting measures against common practices in the industry. The analysis is focuses on review of costs in Profit and Loss statements compared with yearly Budgets and monthly forecasts as both hotels in question experience underperformance through past few years which raises shareholders concerns. Overall, this work aims to contribute to the ongoing debate on sustainability and profitability of hotels in the Nordics by comparing the approaches of two different brands of hotels and review cost evaluation practices of the Dutch Hotel Group. By examining variable and non-variable costs of two Nordic hotels in Tampere and Stockholm recommendations will be made how to improve practices on P&L reviews. Presented work also can be used to further analyse performance of both properties in the Nordics.