Lodging Firms in the New Millenium

REFEREED ARTICLES

 The U.S. Lodging Industry in the New Millenium - A Delphi Study to Predict Changes in the Lodging Industry Structure, Performance and Capital Sources in Years 2000 and 2005

A.J.Singh

 This article presents the key results of a Delphi Study conducted to predict changes in the lodging industry structure, performance and capital Sources. The purpose of this study was to make predictions in six areas of concern for lenders, investors, owners and managers associated with the U.S. lodging industry. These six areas, which also represent “uncertainties,” are: 1) capital needs of the lodging industry, 2) availability of capital for the lodging industry, 3) cost and terms of capital, 4) structural changes in the lodging industry, 5) operating and investment performance and 6) role of financial institutions as suppliers of capital to the lodging industry. 

Differences in Financial Characteristics between Small and Large Firms: An Empirical Examination  of the Casino Industry

Arun Upneja, Hyunjoon Kim and Amrik Singh

 This study examines the differences in financial characteristics between small and large firms in the rapidly expanding casino industry. Financial ratios from 50 casino firms from the fiscal year 1995 are examined to determine the differences between small and large firms. Firms are classified into small and large groups based on the median value of total asset size for sample firms.  Wilcox rank Sum Test, a non-parametric test, is used to test for differences in the financial characteristics of small and large firms.  The main results are that smaller firms have higher liquidity and short term debt ratios.  Larger firms have a higher proportion of long term and total debt.  Larger firms do not appear to enjoy economies of scale, as they had lower efficiency ratios.  However, larger firms also were more profitable.

The Post-Merger Equity Value Performance of Acquiring Firms in  the Hospitality Industry

Atul Sheel and Amit Nagpal

This paper investigates long run equity value performance of acquiring firms in the hospitality industry. The performance analysis has been done using the Jensen measure and the Market model. The study shows significantly negative equity value performance of the acquiring hospitality firms at least for the period 1980-2000. As such the impact of mergers and acquisitions on equity value of acquiring firms in the hospitality industry is better understood.

A Survey of Capital Budgeting Methods Used by the Restaurant Industry

Robert A. Ashley, Stanley M. Atkinson and Stephen M. LeBruto

The purpose of this study was to determine what capital budgeting and cost of capital procedures are being used in the Food Services segment of the hospitality industry and to compare the responses, where possible, with those reported in the previous studies of capital budgeting techniques in the hospitality industry. The most popular primary capital budgeting techniques selected were the sophisticated or discounted cash flow methods, such as net present value and internal rate of return. The payback method was selected as a secondary technique.

INVITED ARTICLES

AHFME Member 1998 Total Annual Earnings Survey

             Raymond S. Schmidgall

 This study was conducted to determine the 1998 annual earnings of hospitality financial management educators.  Sixty percent of AHFME’s members affiliated with educational institutions responded.  Annual base salaries ranged from $43,000 to $115,000.  The lowest-paid member is an assistant professor while the highest-paid member is a full professor.  Most respondents supplement their base salaries by teaching during summer school and conducting consulting.  The total annual earnings of members ranged from $48,000 to $190,500.  Hospitality financial management educators appear to be more highly compensated than hospitality industry financial executives.

VIEWPOINT

An Examination of International Tourism Sales in China

             Mao-LiangWei

 This study uses regression analysis to examine the growth in China's international tourism sales for the 1980 - 1999 period. As such the relationship between China's international tourism sales and China's inflow of foreign tourists is better understood.

ABSTRACTS OF PRESENTATIONS AT THE 1999 ANNUAL AHFME RESEARCH SYMPOSIUM

 An Analysis of Business Cycles and Restaurant Failure Rates

                Steve Morse

 An Examination of Capital Structure in the Restaurant Industry

Arun Upneja and Michael C. Dalbor

 The Effect of Corporate Acquisitions on Stockholder Returns in the Lodging Industry

Linda Canina

 Hotel Management Contracts: Breach of Contract, Termination and Damages

Robert H. Wilson