ABSTRACT
Any change to the structure of the backbone of hotel business—its capital—has to be supervised skillfully, as it permeates all results of activity, from return on assets up to solvency margin. It is the efficient allocation of financing sources that can ensure a business its independence and good standing, which is the guarantee of sustainable development and full-fledged functioning in conditions of an increasing number of bankruptcies. This article considers trends, scopes, and sources of financing for a certain standard subject of hotel business within one country. Changes in the scope and structure of financing are analyzed. The authors have determined that hotel business organizations do not perform record-keeping except for tax purposes; financial accounting and reporting are done by them only to the extent that is required for calculating and reporting taxes, there being no grounds for saying if they are valid. Moreover, it has been found that private hotels do not use long-term crediting facilities as financing sources for their business. In this article, the main stages of developing the formation policy for a hotel’s own financial resources are suggested, as are the criteria of the process of streamlining the internal and external sources for the hotel businesses under study to form their own financial resources.
