The practice of management accounting in hotel groups

Abstract

Hotel groups are an interesting context for studying management accounting practices 1 for two reasons. First, there is no accounting literature on management accounting and its contribution to the management of groups of hotels;2 and second, the industry has a number of unusual characteristics which may influence the management accounting systems employed. For example, the industry is capital-intensive with a close link between profitability and asset values. Unlike factory plant and equipment, the assets may reasonably be expected to hold their value in the long-term and not be subject to obsolescence, provided adequate funds are devoted to maintenance, and that the earnings of the business are maintained.