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Ichoose to write about Diamond Rock Hospitality Company because it’s a diversified company in the sense that it has invested widely in various departments (through major hotels) within the hospitality industry. The company has 22 premium luxury hotels. The diversification of the company cuts through the resorts, full-business hotels as well as conference centers. The company manages hotels such as Hilton Minneapolis and Conrad Chicago which in itself is a full service luxury hotel. I also decided to explore this particular company because it has a simple website through which different kinds of information are availed directly to the public. It should be noted that the company is the overall owner of several hotels within the hospitality industry. The hotels which fall under its ownership include among others: Hilton Minneapolis (a luxurious type of hotel), Orlando Airport Marriott (provides food and beverage services to its customers) and Chicago Marriott (provides resort and spa services to its customers).
The various changes as recorded in the balance sheet include:
2009 2010 Change/Difference
Amount ($) Amount ($) Amount ($)
Assets: 2,414,609 2,215,491 199,118
Liabilities 220,212 253,208 (32996)
Owners Equity 1,413,517 1,175,506 (238011)
The resultant changes in assets base came as a result of the office constructions which were under way. The company decided to increase its assets base and was in the progress of constructing an office which was to be used for management purposes. The increase in liabilities came as a result of the interest paid for the purpose of servicing the mortgage it had undertook in the previous financial years. The evident change in the amount of owner’s equity is as a result of the commitment put in the amount in purchasing another Hotel in Minneapolis (Hilton Minneapolis 1).
The consolidated total changes in revenue for the company for the years ended 31st Dec 2009 and 31st Dec 2010,
31st Dec 2010 31sst Dec 2009 Total Change
Amount in Millions ($) Amount in Millions ($) Amount in Millions ($)
Totals 624.4 575.7 48.7
The resultant increase in the amount of profits is as result of the increased demand for conference and resort services by customers. The consolidated Income statement for the company indicates extensive exploration by the company to the potential markets within the resort and conference departments. The Income provided indicates that most of the revenues received were obtained from the room, beverage and other operating revenues from the chains of hotels altogether.
According to Diamond Rock Hospitality Company (1), the consolidated income Statement provided, the food department seems to be operating expensively. This is indicated by the resultant loss recorded in Orlando Airport Marriott, a hotel which provides customized food services to the customers. The statement indicates a loss of about 11% in revenue within a one period.