ABU DHABI NATIONAL HOTELS

Order Description
Abu Dhabi National Hotels (ADNH) had been struggling and the performance of the company had significantly declined, especially that of its main hotel business. Last year, in 2011, the company reported a decline in its net profit of AED 31 million.3 This was not the first time the company’s profits had slipped, as its net profit had been decreasing since 2009. With the shrinking profitability, shareholders were losing confidence in the company. The share prices of the company had also deteriorated from AED 3.76 per share in 2009 to AED 2.2 per share in 2011 and were expected to decline further4 (see Exhibit 1).
With the drop in net profit year by year, investors were very concerned about the company’s performance and the direction of its future growth. A deep analysis of the company’s performance areas and a determination of ways to improve these areas were required.

TASK
Using a trend analysis of the financials and strategy employed in the case, provide a 2500- word report that makes recommendations to the senior management at ABU DHABI NATIONAL HOTELS on how the business can be transformed. It is vital that established Mega Trends and other considerations are made in the narrative presented.

Guide:
Financial ratio analysis show be used for analysis and recommendations (Liquidity, Profitability, Efficiency and leverage ratios).
Link the financial performance to the overall strategy being employed to inform your evaluation and analysis.
Use appropriate referencing for the report