Another industry hit hard by the Corona pandemic is hospitality of course. A large hotel-company might provide a good example. Although I like to travel now and then, staying in different cities, I’m not much of a business traveller. I could call myself “CEO” of this small AnRep3D Company, but the truth is that I earn my bread and butter as a management consultant, currently working for a large bank with its headquarters close to where I live. When I stay in a hotel it’s usually rather modest like the one in the picture, often family-owned. To fit in the 3D-graph with Qantas already in it, we need more like a large chain with hotels all over the world, so I started looking.
Photo by Free-Photos on Pixabay
Being a hotel-illiterate as explained above, I went to a ranking-site and picked their number one: Wyndham. It was a good choice, because a lot of information is shared at the Wyndham-site. All necessary quarterly and annual reports were available, so it was easy to put the numbers in my input-file (shared again as promised).
After generating the 3D-graph, the result was a bit of a surprise. Looking at the numbers I could have known, but I prefer the 3D-graph to get a good impression. The largest hotel chain in the world turns out to be much smaller (looking at the revenue) than an airline which is not even in the top ten of the world. Qantas’ revenue is less than the revenue of number ten in airlines.
Double-clicking the screenshot will open the 3D-graph in your browser. Beware: thegraph haw so many companies that zooming out is necessary to see the whole picture! Clicking the right mouse-button and moving the mouse up and down at the same time, will zoom the graph in and out. For maniputalion of this 3D-graph: Clicking left while moving the mouse will tilt the graph in different directions. Double clicking in the graph translates it and readjusts the centre at the same time. Just try it – If you don’t know how to get the normal position back, refresh the page in your browser.
Yet the revenue of the world’s largest hotel-chain is still six times smaller (height of the building in the graph). Be aware that the numbers are semi-annual and the annual value for e.g. 2019 is the sum of H1 and H2. Qantas ranks high when it comes to customer satisfaction and safety, so it is well-known after all. Wyndham on the other hand is probably not as well-known as Marriott or Hilton.
It’s not only about the revenue of course as a 3D-graph shows more. The equity is more or less the same magnitude (width of the buidlings), but the liabilities (depth of the buidling) are much lower for Wyndham – less than one-third! Yet the liabilities for Wyndham and Qantas grew rapidly during H1 of 2020 whilst their equities shrunk and we shouldn’t be surprised about that.
Finally there is something special with the Wyndham cash-flow (the coloured roof of the building). Like with Qantas we expected a healthy green roof for 2019 H1 and H2, but H1 is red. For 2020 H1 it is cleary the result of the Corona-virus hitting the industry, but why 2019H1? The quarterly report shows that because of the acquisition of La Quinta, completed in 2018, provisions had to be made for upcoming tax liabilities. It is a huge amount: USD 188. Without such a provision the roof would have been green after all.
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Photo by AllClear55 on Pixabay