Research On Performance Evaluation Of Medium And Small Sized Hotel Based On Economic Value Added

In today's information era, the internal and external surroundings of the hotel have undergone great changes. If the medium and small sized hotels want to survive in severe competition, they must establish a performance evaluation system that can reflect accurately the economic information and strategic direction to correct the measures of management and guide managers behavior correctly. The traditional performance evaluation methods can not reflect the medium and small sized hotels' actual performance and strategic competition abilities. So, it is necessary to reform the traditional methods.Though there is successful practical experience in foreign countries for the introduction of Economic Value Added, it should be combined with the realities of the medium and small sized hotels. This paper researches the limitation of the traditional performance evaluation methods, the advantages of Economic Value Added and constructs the performance evaluation system based on Economic Value Added. Economic Value Added method use financial indicator as the major method, a scientific and effective method has not been built so far in non-financial evaluation. This paper introduces Balanced Scorecard and combines the non-financial indicators of Balanced Scorecard with Economic Value Added. It wants to build Economic Value Added and Balanced Scorecard performance evaluation in order to perfect Economic Value Added performance evaluation system.This paper uses Wu Han Yan Yang Tian Hotel as a case, through analyses the financial statement and questionnaire, builts Economic Value Added and Balanced Scorecard performance evaluation. It uses analytic hierarchy process to confirm the weights of each index, attempts to offer effective procedure and method for comprehensive evaluation of the medium and small sized hotels performance in China.