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NEE ROMAN 2006104603

MAY 19TH, 2009

HISAR HOTEL

1. ROA= Net Income After Tax / Total Assets = 59.096 / 2.250.000 =0,02 As we look at the ROA ratio, we see the managements effectiveness in its use of assets. The ratio is very low which indicates there is an ineffective management in the use of assets. ROE= Net Income After Tax / Total Equity = 59.096 / 1.500.000 = 0,03 ROE ratio is extremely low in term of other financial ratios. Such as if a bank interest rate is 8%, our profitability of business is significantly low. Departmental Contribution Margins Rooms F&B Other Dep. Total CM 79% 27% 19% 52% In terms of rooms department our CM % is high. Other departments are not profitable as rooms and F&B deparment. Total CM% is not so good but it is sufficient.

2. Room Sales Revenue (2008) = 65 x 40 x 365 x 80% = 759.200 Room Sales Revenue (2009 15% increased ARR, decrased occupancy 10%) : 75 x 40 x 365 x 70% = 766.500 ROA= 24.919 / 2475000 = 0,010 ROE = 24.919 / 1650000 = 0,015 Compare to last year, our profitability ratios decreased significantly, because of the low net income of 2009. 3. Occupancy level will decrease %75, number of people coming to hotel will be less. In response to falling occupancy average room rate should be increase by %10 percent. I will decrease the number of employees in F&B department and start to work with part time employees, so F&B departmental payroll will be decrease by 10%. Also cost of sales will be decreased by %10 due to suppliers pricing strategy and stocks. Revenue of F&B and other operating deparments are expected to increase by %5. Departmental expenses forecasted to increase by %10. Administrative and general expenses will be kept constant due to economic environment. Advertising and promotion is budgeted as %5. Heat,light,power, repairs and maintenance costs is expected to increase by %10. 1

4. It is foreseen that there will be a crisis in 2009. This means we should cut some variable cost. Depending on my own budget statatement, F&B departmental payroll should be decreases by %10. This can be done through decreasing the number of employees and working with part time employees. An economic crisis sometimes can create an advantage, if we have enough stocks for food, our food cost will decrase. Also some suppliers can decrease the prices some foods and drinks which allows us to give same quality at low cost. To cover the loss from occupancy rate decrease, out ARR should be $72. Due to economic conditions, administrative and general expenses should be kept constant. Heat,Light,power, repairs and maintenance cost is expected to increase %20. As a a result of this expectations, net income will 52.112 in my 2009 budget. At Hisar Hotels 2009 budgeted income statementi the net income for 2009 will be 24.919. Compare to 2008, my net income will be decrased due to ecomic conditions. In my own budget statement, net income is %47 more profitable than the Hisar Hotels. ROA = 52.112 / 2475000 = 0,021 ROE = 52.112 / 1650000 = 0,031

HISAR HOTEL INCOME STATEMENT FOR THE YEAR ENDING DEC 31,2008 COST OF DEPARTMENTS SALES % SALES % Rooms 759.200 48,55 0 0,00 Food & Beverage 728.200 46,56 240.300 87,48 Other Op.Depts. 76.500 4,89 34.400 12,52 Total 1.563.900 100% 274.700 100% UNDISTRIBUTED OPERATING EXPENSES Administrative and General Advertising and Promotion Heat, Light and Power Repairs and Maintenance TOTAL INCOME BEFORE FIXED CHARGES FIXED CHARGES Insurance Interest Expense Depreciation TOTAL INCOME BEFORE TAX TAX NET INCOME DPT'AL PAYR % 160.900 33,54 291.280 60,72 27.540 5,74 479.720 100% DPT'AL EXP % 84.310 54,33 65.530 42,23 5.350 3,45 155.190 100% 125.690 47.130 62.840 94.270 329.930 324.360 23.000 95.000 110.000 228.000 96.360 37.264 59.096 DPT'AL GM INC % CM CM % 513.990 78,56 598.300 78,8% 131.090 20,04 196.620 27,0% 9.210 1,41 14.560 19,0% 654.290 100% 809.480 51,8%

HISAR HOTEL BUDGETED INCOME STATEMENT OF MANAGEMENT For the Year 2009 DEPT'AL DEPT'AL DEPT'AL COST OF SALES % % % % GM % CM CM % SALES PAYROLL EXPENSES INCOME DEPARTMENTS Rooms 766.500 46,41 0 0,00 160.900 33,54 96.961 54,33 508.639 77,74 605.600 79,0% Food & Beverage 801.020 48,50 276.393 87,48 291.280 60,72 75.367 42,23 157.980 24,15 233.347 29,1% Other Op.Depts. 84.150 5,09 39.557 12,52 27.540 5,74 6.157 3,45 10.896 1,67 17.053 20,3% Total 1.651.670 100% 315.950 100% 479.720 100% 178.468 100% 677.532 100% 856.000 51,8% UNDISTRIBUTED OPERATING EXPENSES Administrative and General 131.974 Advertising and Promotion 51.843 Heat, Light and Power 75.408 Repairs and Maintenance 113.124 TOTAL 372.349 INCOME BEFORE FIXED CHARGES 305.183 FIXED CHARGES Insurance 28.000 11,52 Interest Expense 105.000 43,21 Depreciation 110.000 45,27 TOTAL 243.000 100% INCOME BEFORE TAX 62.183 TAX 37.264 NET INCOME 24.919

HISAR HOTEL INCOME STATEMENT For the Year Ending Dec.31, 2008 DEPT'AL DEPT'AL DEPARTMENTS SALES % COST OF SALES % PAYROLL % EXPENSES Rooms 788.400 47,73 0 0,00 160.900 33,54 92.746 Food & Beverage 764.610 46,29 248.754 87,48 262.152 54,65 72.090 Other Op.Depts. 80.325 4,86 39.557 12,52 27.540 5,74 5.889 Total 1.633.335 100% 315.950 100% 450.592 100% 170.709 UNDISTRIBUTED OPERATING EXPENSES Administrative and General 125.690 Advertising and Promotion 49.486 Heat, Light and Power 75.408 Repairs and Maintenance 113.124 TOTAL 363.708 INCOME BEFORE FIXED CHARGES FIXED CHARGES Insurance 28.000 Interest Expense 105.000 Depreciation 110.000 TOTAL 243.000 INC. BEFORE TAX TAX NET INCOME DEPT'AL % INCOME GM % CM 54,33 534.754 81,73 627.500 42,23 181.614 27,76 253.704 3,45 7.339 1,12 13.228 100% 696.084 100% 866.793 CM % 80% 33% 16% 53%

332.376 11,52 43,21 45,27 100% 89.376 37.264 52.112