Factors Affecting Operational and Financial Performance Indicators of Rooms Division in Four and Five-Star Hotels in Cairo

Abstract

The purpose of this research is to investigate the factors affecting operational and financial performance indicators of the rooms division in Cairo's four- and five-star hotels. The results of this research show that there is a high variation coefficient for the performance indicators among the sample hotels; a t-test showed that the factors of hotel manager gender (in favor of female managers), hotel chain type (in favor of international chains), and hotel manager nationality (in favor of Egyptian managers) have an effect on the level of hotel performance; According to the results of the chi-squared test, the factors of hotel operator, hotel operator nationality, and hotel location have an effect on the level of hotel performance; and the indicator of total room revenues has a positive correlation with average daily rate (r = 0.591), revenue per available rooms (r = 0.599), total rooms sold (r = 0.717), and annual rooms (r = 0.727); in addition, there is a strong direct relationship between average daily rate and revenue per available room (r = 0.977) at the 0.01 level. Finally, the findings of this research are crucial for hotel managers to understand in order to increase the level of hotel performance, whether it is operational or financial.