Presenter: Michael Turner (UQ Accounting)

 

Title: Hotel management contracts and deficiencies in owner-operator capital expenditure goal congruency

 

Abstract: A review of the findings of prior empirical research concerning hotel management contracts between owners and operators is undertaken. It is noted that management contracts have become increasingly commonplace in the international hotel sector and that gross revenue and gross operating profit are the most extensively used determinants of operator incentive fee remuneration. These findings present a platform for examining how revenue and gross operating profit are deficient in promoting owner-operator goal congruency. In light of this, return on investment (ROI) and residual income (RI) are examined as potential alternative determinants of operator reimbursement. While it is appears that both ROI and RI as determinants of hotel operator fees would represent an advance in promoting owner-operator goal congruency, a rationale outlining how residual income is preferable to ROI is outlined.

 

Biography: Michael began his academic career with three and a half years employment by Griffith University’s Department of Accounting, Finance and Economics as well as the Department of Tourism, Leisure, Hotel and Sport Management. His new position at the UQ Business School from 2009 is as a lecturer in accounting.

Michael submitted his PhD in late January 2009. The thesis title was “An Investigation of Asset Expenditure Management in Australian Hotels”. In broad terms, areas in which the thesis touched included: (1) capital budgeting; (2) reserve accounting; (3) earnings management; (4) performance measurement; (5) stakeholder theory; (6) organisational power; and (7) hotel ownership structures. The broad aim of this research was to further understanding of factors relating to asset expenditure management practices in Australian hotels. Michael’s research was endorsed and supported by Horwath Asia Pacific, Cushman & Wakefield Hospitality and Jones Lang LaSalle Hotels.

 

Date/Time: Wednesday 13th May, 4:00pm-5:00pm (followed by an informal research discussion with hotel/hospitality staff).

 

Venue: St Lucia Campus, Building 39, Room 112

 

Contact: For further information please contact Dr Brent Richie, 67308 or b.richie@uq.edu.au