Magnolia Hotel - Food & Beverage Department Report ( Vertical Analysis )

Assessment Task:

The Magnolia Hotel is a medium sized hotel located in the Sydney CBD. It is part of the successful Magnolia Hotel Group that was established some ten years ago. The hotel group is Australian based, it does not have operations outside of Australia. The Magnolia Hotel, Sydney is the newest addition to the group and has been operating for just six months. Without any historical trading results to compare current performance to, it is appropriate to conduct a vertical analysis of the Profit & Loss Statement in order to evaluate performance and control day-to-day operations.

You are required to undertake a comparative vertical analysis of the operational results for the Food and Beverage Department. For this purpose, you are provided with the performance benchmarks used across the hotel group. Based on this analysis, identify areas of significant overspend and suggest possible causes.

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