Current year Previous year 60% 78% 75% 85% 50% 90% 70% 80% Customer rating of staff courtesy (maximum score 100%) Customer rating of staff responsiveness (maximum score 100%) Customer rating of staff competence (maximum score 100%) Customer rating of staff appearance (maximum score 100%) Customer rating of staff cleanliness (maximum score 100% Audited percentage of procedures done according to job specification Hours of in-house training per employee Suggestions per employee Year-on-year employee retention rate 60% Atlantico Hotel Ltd is a medium-sized privately-owned hotel situated in the central business district of Liverpool. It is located at the main entrance of a major business park. The hotel offers accommodation, restaurant facilities, a fully equipped fitness centre, a business centre and a host of other facilities to lure business travellers such as concierge services, currency exchange and airport and railway transfers. Bryan Seacrest manages and holds 100 per cent of the hotel's share capital. He is 65 years of age and wishes to retire from active life in the next five years and travel the world. He has invited offers from interested individuals who can join him in partnership and take a controlling interest in Atlantico when he retires. Kate Hope is one such prospective partner who is interested in joining Bryan's hotel business. Kate has previously worked in the hospitality industry and is confident that she would be able to effectively manage a hotel of this size. She has collected data about the hotel's performance over the past two years to help her decide whether to join Bryan's hotel as a business partner. The data gathered by Kate are based on the balanced Scorecard approach to performance measurement. The relevant data are presented as Appendix 1 and Appendix 2. 70% 75% 85% 100 hours 20 35% 120 hours 22 55% Appendix 1 Current year Previous year 55% 65% Current year Previous year 2,500,000 2,500,000 1,250,000 1,187,500 250,000 235,000 Average percentage of staff with qualifications and skills needed for hospitality business Market share Room occupancy rate Customer satisfaction rating (maximum 100%) 55% 4.33% 55% 65% 3.67% 65% Estimated market value of the business Turnover Earnings before interest and taxes (operating profit) Current assets (cash, inventory, investments and credit card debtors) Current liabilities (trade payables and borrowings) 37,500 31,250 Required: 8,750 12,500 (a) Based exclusively on the information provided in Appendix 1, assess the financial performance of Atlantico Hotel. Appendix 2 (b) Discuss why the data in Appendix 2 is more likely to provide a better indication of Atlantico's future success than the data in appendix 1. (c) Using all the information available, assess Atlantice's prospect and advise Kate Hope as to whether or not she should join Bryan in a partnership. Current year Previous year 60% 78% 75% 85% 50% 90% 70% 80% Customer rating of staff courtesy (maximum score 100%) Customer rating of staff responsiveness (maximum score 100%) Customer rating of staff competence (maximum score 100%) Customer rating of staff appearance (maximum score 100%) Customer rating of staff cleanliness (maximum score 100% Audited percentage of procedures done according to job specification Hours of in-house training per employee Suggestions per employee Year-on-year employee retention rate 60% Atlantico Hotel Ltd is a medium-sized privately-owned hotel situated in the central business district of Liverpool. It is located at the main entrance of a major business park. The hotel offers accommodation, restaurant facilities, a fully equipped fitness centre, a business centre and a host of other facilities to lure business travellers such as concierge services, currency exchange and airport and railway transfers. Bryan Seacrest manages and holds 100 per cent of the hotel's share capital. He is 65 years of age and wishes to retire from active life in the next five years and travel the world. He has invited offers from interested individuals who can join him in partnership and take a controlling interest in Atlantico when he retires. Kate Hope is one such prospective partner who is interested in joining Bryan's hotel business. Kate has previously worked in the hospitality industry and is confident that she would be able to effectively manage a hotel of this size. She has collected data about the hotel's performance over the past two years to help her decide whether to join Bryan's hotel as a business partner. The data gathered by Kate are based on the balanced Scorecard approach to performance measurement. The relevant data are presented as Appendix 1 and Appendix 2. 70% 75% 85% 100 hours 20 35% 120 hours 22 55% Appendix 1 Current year Previous year 55% 65% Current year Previous year 2,500,000 2,500,000 1,250,000 1,187,500 250,000 235,000 Average percentage of staff with qualifications and skills needed for hospitality business Market share Room occupancy rate Customer satisfaction rating (maximum 100%) 55% 4.33% 55% 65% 3.67% 65% Estimated market value of the business Turnover Earnings before interest and taxes (operating profit) Current assets (cash, inventory, investments and credit card debtors) Current liabilities (trade payables and borrowings) 37,500 31,250 Required: 8,750 12,500 (a) Based exclusively on the information provided in Appendix 1, assess the financial performance of Atlantico Hotel. Appendix 2 (b) Discuss why the data in Appendix 2 is more likely to provide a better indication of Atlantico's future success than the data in appendix 1. (c) Using all the information available, assess Atlantice's prospect and advise Kate Hope as to whether or not she should join Bryan in a partnership