TOP-10 hostels by the return on equity ratio

ranking 21/10/2019

Information agency Credinform represents the ranking of the largest Russian hostels. Hostels – legal entities with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2016 - 2018). Then they were ranked by the return on equity ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Return on equity (%) is calculated as a relation of company’s net profit to its equity. The ratio determines the efficiency of use of capital invested by the owners of the enterprise and shows how many monetary units of net profit were earned by each unit invested by owners.

This indicator is used by investors and company’s owners to measure their own investment. The higher the ratio value, the more profitable the investment. By the return on equity with a negative or zero value it is necessary to analyze the advisability and efficiency of investment in the enterprise in the future. In such cases, the ratio value should be compared with other investment.

Too high value of the indicator, in its turn, can negatively affect the financial stability of a company. High profitability implies also higher risks.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of company’s financial indicators and ratios.

Таблица 1. Net profit, revenue, return on equity ratio, solvency index Globas of the largest hostels (TOP-10)
Name, INN, region Sales revenue, mln RUB Net profit (loss), mln RUB Return on equity, % Solvency index Globas
2017 2018 2017 2018 2017 2018
1 2 3 4 5 6 7 8
DRUZYA-OTELI I KHOSTELY LLC
INN 7842074140
Saint-Petersburg
down22,85 up22,57 down5,47 down3,94 down-153,23 up998,98 274 Medium
OKEI KHOSTELGRUPP LLC
INN 7713389343
Moscow
up21,66 up26,94 up0,89 up2,48 up82,08 down69,49 243 Strong
SET UYUTNYKH KVARTIR,OBSHCHEZHITII I KHOSTELOV UYUT LLC
INN 7841491060
Saint-Petersburg
up18,82 up22,06 down-1,60 down-3,08 up25,60 up33,01 346 Adequate
PLANETA KHOSTEL LLC
INN 7705557749
Moscow
down27,33 up37,94 up3,22 down1,01 down124,72 down28,16 262 Medium
HOSTEL-S LLC
INN 7702375797
Moscow
down26,71 up28,28 down2,11 down1,60 down28,56 down18,14 272 Medium
HOSTEL-A NJSC
INN 7720791790,
Moscow
is in the process of reorganization in the form of transformation, since 09.06.2017
up10,15 up17,81 up-5,83 up0,29 down33,39 down-1,66 306 Adequate
SET KHOSTELOV ZAKHODI LLC
INN 7743111955
Moscow
down17,63 up20,45 up-2,85 up0,84 down8,36 down-2,52 307 Adequate
KHOSTELSERVIS LLC
INN 7726053654
Moscow
up20,63 up30,26 up-0,64 up0,89 down3,73 down-5,57 298 Medium
SUPERHOSTEL LLC
INN 7842504932
Saint-Petersburg
up137,53 down118,65 up7,53 down-1,03 down118,02 down-18,95 253 Medium
SWEET VILLADGE HOSTEL LLC
INN 7840033501
Saint-Petersburg
up16,03 up19,14 up1,57 down-0,63 down83,97 down-50,77 300 Adequate
Total by TOP-10 companies up319,34 up350,08 up9,88 down6,31    
Average value by TOP-10 companies up31,93 up35,01 up0,99 down0,63 down35,52 up106,83
Industry average value up33,17 up38,79 down-12,74 up-4,65 up3 388,74 down1 229,76

Up improvement of the indicator to the previous period, Down decline in the indicator to the previous period.

The average value of the return on equity ratio of TOP-10 companies in 2018 is significantly lower than the average value for the hotel services industry. Two companies improved results in 2018.

Picture 1. Return on equity ratio and revenue of the largest hostels (TOP-10) Picture 1. Return on equity ratio and revenue of the largest hostels (TOP-10)

Over 10 years, the average values of the return on equity ratio in the hotel services industry have a tendency to increase. (Picture 2).

Picture 2. Change in industry average values of the return on equity ratio of hotel facilities in 2009 – 2018 Picture 2. Change in industry average values of the return on equity ratio of hotel facilities in 2009 – 2018