The role of the CFO in 4 and 5 star hotels

Abstract

Purpose: This study aims to explore the current role of the CFO in local 4 and 5 star hotels, how it has changed from past years, and it also forecasts the possible direction of this role in the future. Moreover, this study seeks to identify any differences in such role between 4 and 5 star hotels. Design: The objectives of this study were attained by conducting semistructured interviews with Chief Financial Officers and General Managers of 4 and 5 star hotels in Malta. Findings: This research outlines the fundamental role that Chief Financial Officers have in the hotel industry. Even though responsibilities have increased, the role has become more fulfilling and rewarding. This is because the Chief Financial Officer has shifted from being merely an accountant to being a key figure in the hotel. It is forecasted that, in the future, the role will be even more significant in helping the business move forward. Conclusions: This study concludes that Chief Financial Officers are not just seen as number crunchers but on the contrary, they have developed into business partners with a number of competencies and leadership skills necessary to carry out their role effectively. As the hotel industry will continue to be crucial for the Maltese economy, it is vital that everyone within the hotel will keep on supporting the Chief Financial Officer to successfully meet the expectations which their role entails. Implications/Value: This study is expected to increase the awareness about the importance of Chief Financial Officers in hotels, especially in Malta, where tourism is abundant. This study aims to bring out the core attributes of the role as well as its transformation from a back office service to a business leadership protagonist. As a result, it brings to light the required skills, the challenges and the needs to overcome them. Finally, it aims at proposing how the role can be better supported and enhanced in the context of the Maltese hospitality sector.