Financial Management of a Hotel Business
Code: 103742 ECTS Credits: 6| Degree | Type | Year |
|---|---|---|
| 2502904 Hotel Management | OB | 3 |
Contact
- Name:
- Jordi Rizo Gubianas
- Email:
- jordi.rizo@uab.cat
Teaching groups languages
You can view this information at the end of this document.
Prerequisites
The subject Financial Management is a compulsory subject that transmits the basic concepts related to the management of a business in the hotel industry and the connection with the financial world. Financial Management wants to give the essential tools to the student for her/him to make business decisions in a rational way.
Behind the course of Financial Management, there is the study of the accounting information provided by the company in order to use this information in the most efficient way possible, to obtain information that allows us to comment and understand the management and current situation of the business.
The study of this subject involves:
a) Understanding of accounting framework
b) Know the differences between the different funding sources
c) Evaluate the possibility of making a new investment
To facilitate the learning process, it is convenient for the student to know the information provided by the Financial Statements; the balance sheet, the profit and loss account and the statement of cash flows. It is necessary to have completed the accounting course.
Objectives and Contextualisation
The main objective of the subject is for the student to learn about the main techniques used in order to make informed decisions about new investments and their financing.
Objectives and Contextualization
At the end of the course, the student will be able to:
a) Know about useful financial information in order to make management decisions regarding Business and new investments (Analyze the main financial statements, Balance Sheet, Profit and Loss and Statement of cash flow.
b) Evaluate if an investment is financially feasible or not.
c) Understand the different from of funding for a company or new investment
Competences
- Analyse, summarise and evaluate information.
- Be able to search efficiently for the necessary information.
- Demonstrate an understanding of and be able to apply financial resources and the analysis of assets, economic and financial information.
- Demonstrate understanding of the function and behaviour of different financial intermediaries in order to be able to negotiate more effectively.
- Develop a capacity for independent learning.
- Identify and apply the elements that govern activity in the hotel and catering sectors, their interaction in the environment and their impact in the different business subsystems in the sector.
- Manage and organise time.
- Manage communication techniques at all levels.
- Plan, organise and coordinate work teams creating synergies and knowing how to put yourself in the place of others when negotiating and managing conflicts.
- Work in teams.
Learning Outcomes
- Analyse, summarise and evaluate information.
- Be able to search efficiently for the necessary information.
- Demonstrate an understanding of and ability to apply financial resources and the analysis of patrimonial, economic and financial information in hotel and catering companies.
- Demonstrate knowledge of the functioning and behaviour of different financial media to ensure more efficient negotiation.
- Develop a capacity for independent learning.
- Identify the specific differentiating characteristics from a financial point of view of the different business subsystems in the sector.
- Manage and organise time.
- Manage communication techniques at all levels.
- Plan, organise and coordinate work teams creating synergies and knowing how to put yourself in the place of others when negotiating and managing conflicts.
- Propose and apply a financial and accounting information systems which studies the internal formation of value in hotel and catering companies.
- Work in teams.
Content
First Part: Analysis of accounting information
Topic 1. The company and the financial director
Topic 2. Accounting and finance
Topic 3. Analysis of the Financial Statements of the Company: Balance Sheet, Profit and Loos and Statement of Cash flows.
Second Part: Techniques to analyze the viability of new investments
Topic 4. The value of money over time
Topic 5. The net present value (NPV) and the internal rate of return (IRR)
Topic 6. Sources of financing: definition and classification, short and long term, external and internal
Activities and Methodology
| Title | Hours | ECTS | Learning Outcomes |
|---|---|---|---|
| Type: Directed | |||
| Case Study presentation | 2 | 0.08 | 1, 2, 3, 4, 6, 7, 8, 9, 10, 11 |
| In class practical cases | 14 | 0.56 | 1, 2, 3, 4, 5, 6, 7, 10, 11 |
| Theorical Clases | 40 | 1.6 | 1, 3, 4, 6, 8, 10 |
| Type: Supervised | |||
| Tutoring | 10 | 0.4 | 1, 2, 7, 8, 9, 10, 11 |
| Type: Autonomous | |||
| Case Studies | 30 | 1.2 | 1, 2, 3, 4, 5, 6, 7, 9, 10, 11 |
| Individual Study | 28 | 1.12 | 1, 2, 3, 4, 5, 6, 7, 9, 10, 11 |
| Resolution practical cases | 14 | 0.56 | 1, 5, 6, 7, 10 |
Teaching language: catalan/spanish
The teaching methodology used in this subject Financial Management:
Theoretical part
The teaching methodology used involves face-to-face classes and high student participation. Through the lectures, the teacher will introduce and define the concepts and techniques of the subject. Students will have the basic contents of the subject through the Virtual Campus (Moodle).
The student must also consult the chapters of the recommended bibliography associated with each chapter and their contributions, doubts and reflections during the class will be assessed.
Practical part
The practical part of the subject will be developed by performing practical exercises either in the classroom or in the computer room that will have to be solved as a group
Annotation: Within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.
Assessment
Continous Assessment Activities
| Title | Weighting | Hours | ECTS | Learning Outcomes |
|---|---|---|---|---|
| 1st exam (theory and practical) | 30% | 2 | 0.08 | 3, 4, 6, 10 |
| 2nd exam (theory and practical) | 30% | 2 | 0.08 | 3, 4, 6, 10 |
| Case Studies | 25% | 4 | 0.16 | 1, 2, 5, 6, 7, 9, 10, 11 |
| Exercices and others | 15% | 4 | 0.16 | 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 |
A) CONTINUOUS EVALUATION:
1-Exams (60%)
There will be two individual written tests on the contents discussed in class and the readings made by the students, which will count as 60% of the final grade (30% each). Each test will be done at the end of each part as stated in content section.
These tests are intended to assess the theoretical and practical knowledge of the contents of the subject.
In order to consider the average of the exams, you must have a minimum score of 3.5 in either one.
2-Exercices and others (15%)
The exercices will be 15% on the grade. The format of evaluation will be explained and detailed by the professor of the assignment on the first day of class
3-Case Studies (25%)
The work will be done in groups (minimum 3 maximum 5 people).
It will consist of the economic and financial analysis of Financial Statements of a real company in the hotel sector.
The last week of the course will be the presentations of each group. The case study will be 25% of the final grade.
The grade obtained is the same for all the members of the group that have participated in the activity.
The course is approved with a final grade of 5 in continuous evaluation.
Important Information
In order to be PASS the continuous evaluation and be EXCUSED from the FINAL exam the Student must have an average minimum of:
- Exams -minimum of 5 in total, with minimum of 3.5 in one of the exams
If the average result of the exams is approved (minimum of 5) by continuous Assessment, the student does not have to take the FINAL exam according to the officialexam calendar. And one of the following:
- Exercises to be delivered and others minimum of 5
- Case Study – minimum of 5
However, the student who fails a part or both parties can be examined from the suspended part or from the whole subject in the FINAL exam of the month according to the official exam calendar.
B) UNIQUE EVALUATION - FINAL EXAM
Students, who have not passed the subject by continuous evaluation or have not followed it, can take the FINAL exam.
C) RECOVERY- RE TAKE EXAM
Only those students who in the FINAL evaluation have obtained a grade equal to or higher than 3.5, but less than 5 will be able to access the recovery. If student pass the retake exam, the maximum grade to apply will be five
The grade for the subject will be NOT EVALUABLE when the student attends less than half of the assessment activities and/or does not attend the final exam.
Bibliography
Richard A. Brealey, Stewart C. Myers, Franklin Allen (2015) Principios de finanzas corporativas [Recurs electrònic] / ISBN 9781456246266
Complementary:
Brealey, R., S.C.Myers y F.Allen (2010). Principios de finanzas corporativas. 9ª edición. Madrid: McGraw-Hill (En inglés hay disponible la 10ª edición: Principles of Corporate Finance, McGraw-Hill, 2010).
Garrido, P.; Iñiguez, R. (2010): Análisis de estados contables. Elaboración e interpretación de la información financiera. Ediciones Pirámide.
Ross, S.A., R.W. Westerfield y J.Jaffe (2010). Modern Financial Management. 9ª edición. Nueva York: McGraw-Hill. (Edición en castellano: Finanzas corporativas, 9ª edición. México DF: McGraw-Hill, 2010)
Software
Will be discussed in class.
Language list
| Name | Group | Language | Semester | Turn |
|---|---|---|---|---|
| (TE) Theory | 1 | Catalan/Spanish | second semester | morning-mixed |