Mr. Glen Wallace has owned the Naples Hotel for 3 years. He is concerned that the property is underperforming, yet is unsure of where the problems are. He has contacted you to learn about the hotel operations audit.

Required:

1. Write a memo to Mr. Wallace explaining the nature of a hotel operations audit.

2. Outline the major areas of revenue that need to be investigated and how they would be analyzed.

3. Explain the major expenses that would be examined and the major questions that would need to be answered regarding these expenses.

4. Explain the usefulness of a tour of the complete facility.