Journal of Hospitality Financial Management: Volume 9, Issue 1
Loading...
Volume
Number
Issue Date
Journal Title
Journal ISSN
Journal Volume
Articles
Use Of Ratios By The Financial Executives In The U.S. Lodging Industry
(2001-01-01) Singh, A. J.; Schmidgall, Raymond S.
The purpose of this study is to identify ratios that property-level lodging financial executives consider important and identify the frequency with which each ratio is referenced. Taken together, these two measures show the usefulness of agiven ratio for evaluating financial performance. The results clearly emphasize the importance of operating, activity, and profitability ratios as key monitoring ratios and categorize ratios into ratios referenced frequently and those seldom used.
Ratio Analysis Practices In The U.S. Lodging Industry
(2001-01-01) Singh, A. J.
Moral Hazard in the Oil Patch: The Effect of the Banking Crisis on RTC Hotel Appraisals in the American Southwest
(2001-01-01) Dalbor, Michael C.
This paper compares appraised hotel values of Resolution Trust Corporation (RTC) properties in the American Southwest ("Oil Patch" states) with their respective market values. The RTC was given the task of having hotel properties appraised and subsequently auctioned for sale. However, RTC officials were aware they had limited time and funding for their operations. Consequently, RTC officials faced a significant amount of political pressure to sell non-performing assets quickly, particularly in the Oil Patch where banking problems were especially severe. Given these circumstances, the RTC may have been motivated to influence appraised hotel values downward to sell more assets faster. The results of this paper indicate appraised hotel values to be lower than their market values in the region. Moreover, the differences between appraised values and market values were significantly more negative in the Oil Patch than in other regions.
Minimum Length-of-Stay Requirements as Part of Hotel Revenue Management Systems: Are They Legal?
(2001-01-01) Wilson, Robert H.
Many hotels have instituted revenue management systems that incorporate minimum length-of-stay requirements; that is, the hotel will refuse to book a room unless the traveler agrees to book for two, three, or more nights. The English common law, case law in the United States, and many state statutes provide that a hotel has an obligation to provide a room to an acceptableguest if the hotel has a room available. This articleattempts toanswer the question: Are minimum length-of-stay controls legal or illegal? The author also provides a method for hotels to continue to use length-of-stay controls, maximize revenue, and comply with existzng laws.
An Investigation of Leasing Practices In The Hotel Industry
(0200) Upneja, Arun; Schmidgall, Raymond S.
Leasing of equipment has increased dramatically in the United States. According to the Equipment Leasing Association of America, total leasing in 1999 reached $226 billion (www.elaoa.com). Despite the popularity and widespread use of leasing, there is a paucity of literature in hospitality on leasing, as the existing literature focuses only on the advantages and disadvantages of leasing. There were three major objectives for this study. Given the scarcity of statistical information on leasing in the U.S. hotel industry,, the first objective was simply to collect statistical data on the magnitude of leasing in the U.S. hotel industry; the second was to find out which reasons for leasing were important to hotel operators in the decision-making process; and the third was to find out which of the four IRS provisions trigger the capitalization of leases in the hotel industry. A survey of the lodging section of Hospitality Financial and Technology Professionals was conducted in the spring of 2000. Some of the preliminary results indicate that protection against obsolescence, uniform cash outflows, and tax advantages of leasing were the most cited reasons for leasing equipment. Transfer of ownership and bargain-purchase options were the two most cited reasons for triggering the capitalization of the leases. A majority of the respondents (58 of 66) also indicated that they expect leasing to either stay at the same level or marginally increase from the current levels.