Journal Issue:
Journal of Hospitality Financial Management: Volume 11, Issue 1

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Lodging Industry Trends-Today and Tomorrow
(2003-01-01) Sheel, Atul
Bond Yields In The Hospitality Industry
(2003-01-01) Chatfield, Hyun Kyung; Chatfield, Robert E.
This paper examines the question of whether there are systematic differences in the cost of debt relative to rating standards between firms in the hospitality industry and firms in other industries. It also examines the impact of make-whole call provisions on the cost of debt. The make-whole call provision is a relatively recent innovation in the corporate bond market. We do find some evidence of a positive hospitality industry impact on bond yields. Additionally, the make-whole call provision appears to be valued by investors, reducing the investor loss from early bond redemption in a period of declining interest rates.
Hotel Real Estate in a Property Investment Portfolio: An Examination of Results from 1992 to 2001
(2003-01-01) Petersen, Gabriel A; Singh, A. J.; Sheel, Atul
This paper analyses the performance of five real estate sub-sectors (ofice, retail, industrial, apartment and hotel) over a ten-year (historical) period, 1992 to 2001, in order to assess the impact the hotel sub-sector would have when constructing a multi-property investment portfolio. The research was built on the foundation of modem portfolio theory and data were analyzed using correlation analysis, Sharpe Ratio and a portfolio simulation model. Research results suggest that, at least during the period 1992 to 2001, the hotel sub-sector outperformed all other sub sectors in terms of total returns and also produced the second best riskadjusted returns. The results also suggest that the inclusion of hotels in the real estate investment portfolio had a significant impact on the efficient frontier offering several 'higher riskr- 'higher return' target options for an investor. As such the significance of the hotel subsector within a multi-property real estate investment portfolio is better understood.
The Evaluation of Forecasting Methods at an Institutional Foodservice Dining Facility
(2003-01-01) Ryu, Kisang; Sanchez, Alfonso
The purpose of this study was to identify the most appropriate method of forecasting meal counts for an institutional food service facility. The forecasting methods analyzed included: naPve model 1,2, and 3; moving average, double moving average, simple exponential smoothing, double exponential smoothing, Holt's, and Winter's methods; and linear and multiple regressions. The accuracy of the forecasting methods was measured using mean absolute deviation, mean squared error, mean percentage error, mean absolute percentage error, root mean squared error, and Theil's U-statistic. The result of this study showed that multiple regression was the most accurate forecasting method, but naive method 2 was selected as the most appropriate forecasting method because of its simplicity and high level of accuracy.
Hotel Franchise Termination: Preliminary Injunctions Protect Unlawful Trademark Use
(2003-01-01) Wilson, Richard H.
Hotel franchise companies license the use of their trademarks, name, logo, and operating procedures to their franchisees in return for the ongoing payment of franchise fees. When a hotel owner fails to pay money owed for franchise fees or fails to adhere to the operational or other requirements, the hotel franchise company will be forced to terminate the franchise. The Lanham Act allows protection to a hotel company for the property rights that exist in their trademarks, logo, and name by allowing for the regstration of those marks and by providing for the use of preliminary injunctions granted by federal courts to stop the unlawful use of valid trademarks. This paper explains how hotels can make use of such tools to protect their bottom line.