Liquidity and Profitability of Hotel Businesses in the North Central Region of Vietnam

Le Van Vien, Tran Van Hai and Hoang Dinh Huong

In the market economy, businesses form, exist and develop with many different goals, there are businesses for profit maximization, there are businesses that maximize revenue in the constraint of profit maximization, or have the business maximize the useful activities of its leaders… but all of these goals have the ultimate desire to maximize the value of assets for the owners, To do so, the business must be profitable, that is, the profitability of the hotel business must be high, and so to achieve the desired level of profitability, the business needs to make related management decisions to appropriate business organization, including financial decisions. With a specific business line, the factors affecting the profitability of a hotel business can be: the experience of the manager, the size and composition of the board of directors, the brand, the location of the guests. Hotel or the satisfaction of customers and employees... Besides, for hotel businesses, every decision must be associated with specific conditions and contexts, including the socio-economic and economic environment. The market is complex and volatile, with attractive business opportunities and potential risks. Hotel businesses have to face the following types of risks: Risks on hotel development strategy; Brand reputation risk; Financial risks. Therefore, in order to develop sustainably, hotel businesses need to balance profitability goals and limit possible risks, ensuring the liquidity of the business.

Volume 14 | Issue 1

Pages: 01-06