Current financial matters in the Hospitality Industry ​

The last few years have been characterised by a deep economic recession caused in large part by Covid-19. The pandemic created a major global crisis that negatively impacted many industries, which suffered a massive decline and were forced to readjust. This paper analyses the current financial situation of the hospitality industry under various perspectives and how this sector dealt with the Covid-19 pandemic. The objective is, therefore, acknowledging which are the key methods applicable for financially analysing a firm operating in this business and its performance, as well as investigating the financial impacts of Covid-19 on the hospitality industry, while the duration of the pandemic is still unknown. To answer this question, an analysis of the financial statements of companies operating in the industry was performed, together with an investigation of the available financial data regarding performance and financial ratios in 2020. Results showed that hospitality has been one of the most impacted industries from an economic and financial point of view, demonstrated by the fact that its financial ratios and stocks have been substantially influenced by the crisis in a negative manner. Results also revealed how the trends and customer behaviours have been shaped by the pandemic. This study emphasizes the crucial need for hospitality industry to recover after the crisis from an economic and financial perspective. Some hints were mentioned for the future of this business, which, nowadays, should essentially focus on sustainability, digitalisation, and, especially, safety and cleanliness.