Wednesday, 30 May 2012

Final Post

Peel Hotels Plc. has started trading with strong positioning in the market. However, in a last 4 years the Company found themselfs in very hard and chalanging environment of downturn worlds economic situation and was trying very hard to survive. Combination of excellent customer service, banqueting premisses in each hotel with clever room pricing (yield management) and room price packages, etc. they have managed to remain in the market. In last 3 month their price per share grown from 39p to 43p, hopefuly it is a sign of again growing business.

Tuesday, 29 May 2012

Ratio analysis

Ratio analysis are quantitative information tool presented in percentages, calculated and compared from last year and the year before P&L account and balance sheet. These analysis important recap the business success and for preparation to following year (Investopedia, 2012).

Peel Hotel Ratios:

  2010 2011
Gross Profit 20.50% 20%
ROCE 0.13% 2,3%
ROCI 0.25% 4,5%
Acid Test 25% 23%
Gearing 60,6% 55,7%
Earnings per share 0.2p 3.6p



In compare the two years of trade and their ratios in above tab, we can see, that the Comany is doing better in 2011 by simply looking at Earnings per share, which are higher by 3.4p from the previous year - 2010. Earnings with a combination of Return of capital employed and invested are the sign that Peel Hotels despite the same Gross Profit margin in 2011 as in previous year, still managed their finances well and is ready for the next year of trading.

Monday, 14 May 2012

The Future

Peel hotels manages to continue to decline in Revpar and thereby gain a cash in order to pay loans and re-investing. Also the interest costs are now also decreasing with decreasing debt profile.

The Company now promotes all hotels and gets involved in number of special events. All 9 hotels are now using affiliating system to get clientele from third parties as well. The key objective is a return of growth in Revpar by the end of the financial years, says Peel (2011).

Peel hotels are prepared for another tough year of trading, but expects additional activity in summer 2012, when Olympic Games come to UK.