Micro Economics On Hilton Hotels

[Author][Professor][Subject][Date]Microeconomics on Hilton HotelsIntroductionHilton Hotel Corporation- one of the most successful companies in the world-wide market and currently operating around 3000 hotels in less(prenominal) than 100 countries (Schein 1 . Just recently , Hilton Hotel made an annunciation of merging with Blackstone Group , one of the chief private paleness firms in the world , and the said merging cost 26 billion Furthermore , Hilton Hotel Corporation does not only blend in hotels but also casino and tourism . With this wide ordinate service line of Hilton Hotel , it is not surprisingly the said club was able to dominate the hospitality industryCostAs expected , the volume of ingestion by Hilton Hotel justifies the size of its operation and service coverage . unmatchable component of Hilton Hotel Corporation equipment expenses . This includes all the tangible assets that they purchase in to improve the services of Hilton Hotel to its customers , see Appendix 1 . With their postgraduate quality standards , Hilton Hotel spends around 7 million USD just to corrupt new equipments and improve their facilities . Since 2002 , they budget allotted to this said costs component will not be less than 5 million . Some of the equipments that Hilton Hotel is being purchased every year argon kitchen and utility equipment as well as other victuals equipment of the bon ton . The management of Hilton Hotel also purchases state of the art piece of furniture and appliance to suit the style of living of their customers . They see to it that their furniture and appliance are with accordance to the mainstream of their target customersMoreover , another cipher of cost component of Hilton Hotel s operation would be the selling , prevalent and administrative expenses . This includes all the costs acquired by the company in providing services such as salaries of the employees , office supplies , telephone expenses galvanic and water expenses .

In other words , this cost component encompasses all the intangible current expenses of Hilton Hotel . In the electricity but , Hilton Hotel spends around 5 million USD every year since they have got more than 4 billion kWh of electricity . They also desolate five million therms of natural gas and around 7 billion gallons of water every year not to observe the 100 ,000 employees that need to be paid twice a month and the office supplies like pen etc . to be purchased for administrative purposes . In 2006 the selling general and administrative expenses of Hilton Hotel accounts to around 900 million USD from 400 USD in 2003 . The said figures are justifiable minded(p) the fact that Hilton Hotel is continuously expanding every yearAnother cost component of Hilton Hotel would be interest expense or the interest paid by the company from the loans and mortgages that they have from various financial institutions . Those long limit loans incurred by Hilton Hotel are being used for the expansion of the company s operation . One example of loans that were acquired by Hilton Hotel for its expansion would be the 5 million USD loan allotted for Park induct Entertainment last...If you want to get a full essay, grade it on our website: Ordercustompaper.com

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