Return on investment of hotels

Information agency Credinform represents a ranking of hotels in Russia. The hotel industry enterprises (TOP-10 and TOP-1000) with the largest annual revenue were selected for the ranking, according to the data from the Statistical Register and Federal Tax Service for the latest available accounting periods (2018 – 2020). Then they were ranked by return on investment ratio (ROI ratio) (Table 1). The selection and analysis were based on the data from the Information and Analytical system Globas.

Return on investment (%) is the ratio of net profit (loss) and net assets value. It demonstrates the return level from each ruble, received from the investments. In other words, it shows how many monetary units the company used to obtain one monetary unit of net profit.

The ratio is used for the assessment of fund raising at a certain interest.

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

Table 1. Net profit (loss), revenue, ROI ratio, solvency index Globas of the hotels (TOP-10)
Name, INN, region Revenue, million RUB Net profit (loss), million RUB ROI, % Solvency index Globas
2019 2020 2019 2020 2019 2020
1 2 3 4 5 6 7 8
INN 7730121138 Moscow
down3 644,3 down1 834,2 down-18,0 down-1 067,6 down-2,63 up277,09 301 Adequate
JSC Mayak
INN 5047002651 Moscow region
up1 653,8 up4 794,3 up244,8 down-344,9 up38,84 up107,91 311 Adequate
INN 7702501346 Moscow
up1 950,5 down1 739,3 up397,5 down-2 829,3 down-28,18 up66,73 286 Medium
INN 2320238976 Krasnodar Territory
up3 351,7 down3 089,4 up280,0 down56,6 up443,05 down64,96 242 Strong
INN 7712098260 Moscow
down2 345,3 down1 716,6 up1 567,8 down-2 222,6 down-51,84 up46,23 281 Medium
INN 7808025538 Saint Petersburg
up4 923,4 down4 711,7 up-470,0 down-1 713,5 down11,74 up29,97 350 Adequate
INN 2312153550 Krasnodar Territory
up1 730,4 down1 664,2 down73,5 down-228,9 up-16,02 up29,56 277 Medium
JSC Krasnaya Polyana
INN 2320102816 Krasnodar Territory
up5 006,5 up5 075,3 up-2 312,8 down-2 499,0 down22,95 down19,87 307 Adequate
INN 7702347870 Moscow
up6 541,2 up6 770,1 up-3 719,9 up-2 714,5 down7,30 down5,06 298 Medium
INN 7704169180 Moscow
down3 466,9 down2 564,2 up855,9 down-1 115,3 up19,94 down-35,10 265 Medium
Average value for TOP-10 up3 461,4 down3 395,9 up-310,1 down-1 467,9 up44,51 up61,23  
Average value for TOP-1000 down216,3 down151,7 up5,0 down-44,6 down-18,71 up50,47  

вверх improvement compared to prior period, вниз decline compared to prior period

The average values of ROI ratio for TOP-10 and TOP-1000 companies are higher in 2020 than the values in the prior period. Four companies decreased the values in 2020, whereas in 2019 the decrease was recorded for six companies.

At the same time, only three companies could increase the revenue and only one - the net profit in 2020.

In average, the revenue decreased by 2% in TOP-10, and by 30% - in TOP-1000. Nine companies showed loss in 2020, whereas in 2019 there were four such companies. Loss in TOP-10 increased almost by a factor of 5.

In general, the average industry values of ROI ratio were among the negative ones within the last 10 years. The highest value was registered in 2011, the lowest – in 2017. (Picture 1).

Picture 1. Change of average industry values of ROI ratio of hotels in 2011 – 2020 Picture 1. Change of average industry values of ROI ratio of hotels in 2011 – 2020
Legislative changes

The Ministry of Finance of the Russian Federation, by letter No. 24-06-08/9591 dated 12.02.2021, announced updated state procurement rules entry into force, including procurement from a single supplier, starting April 1 of this year.

Thus, procurement of small quantities less than 3 million rubles can only be conducted in electronic form. At the same time, procurement commission is not created and the minimum price is not limited.

Based on the results of procurement, state contracts are signed in a simplified form with an enhanced electronic signature.

The Letter explains the formation procedure of preliminary proposals by procurement participants on electronic platforms for the supply of goods:

  • applications including information about goods, their quantity and prices is posted by procurement participants on electronic platforms;
  • operators of electronic platforms automatically select the most suitable offers for specific applications and send customers from 2 to 5 applications with offers of the lowest prices;
  • procurement cannot be made in cases where operators were unable to select at least two participants;
  • after reviewing the applications, customers conclude contracts at the lowest price from among the proposed ones.

Subscribers of the Information and Analytical system Globas are able to access the information about all transactions, procurement, bankruptcy auctions and conduct an in-depth analysis of all these categories in the corresponding updated section of the Globas.