Hotel is a company that is managed by its owner by providing food, beverage, and bedroom facilities to people who are traveling and able to pay a reasonable amount in accordance with the services received without any special agreement. Hotel performance is described as accomplishing defined outcomes or the output as the result of the conversion of inputs. Performance offers proof of the relationship between minimum and efficient cost, as well as between efficient cost and output and between output and achieved result. Hotel performance is the achievement or output of specified measurable objectives and the efficient execution of predefined responsibilities. Hotel performance can be measured using financial performance and non-financial performance.
A. Financial Performance
Financial performance is a description of every economic result that a company can achieve in a certain period through the company's activities to generate profits efficiently and effectively, which can be measured by conducting an analysis of financial data reflected in financial reports (Krisnadi & Josua, 2016). A hotel's financial performance can be measured using sales growth, growth in service after-tax, market share, return on assets (ROA), return on equity (ROE), return on sales (ROS), overall firm performance and success, competitive position (Kseoglu et al., 2013).
B. Non-Financial Performance
Non-financial performance indicators are suitable for circumstances where performance results are difficult to measure and where there is a relation between activities and results ). A hotel's non-financial performance can be measured using customer Satisfaction, customer loyalty, employee satisfaction, employee turnover, and company image.
