Relationship between Changes in Cash Flow and Investments in Publicy Traded Restaurant Firms in the United States

This research investigated the relationship between investments in fixed assets and free cash flows of U.S. restaurant firms while controlling for future investment opportunities and financial constraints. It also investigated investment and cash-flow sensitivity in the context of economic conditions. Results suggested that investments in small firms (with higher financial constraints) had relatively weaker sensitivity to cash flows than investments in large firms (with higher sensitivity). Controlling for economic conditions did not significantly change results. While the debate over sensitivity of investments to cash flows remains unresolved, it has not been explored widely in industry contexts, especially in services such as the restaurant industry. In addition to its contribution to this literature, this paper provides implications for cash-flow management in publicly traded restaurant companies.

Intra-regional Tourism and Challenges Facing Hong Kong's Hotel Industry

Asia is experiencing a rapid growth in intra-Asian tourism, and is finding that the spending priorities of these new visitor markets is quite different from traditional markets. Not only have Hong Kong's markets changed, but the economic operational environment is becoming increasingly difficult as a result of the change in sovereignty in 1997, increasing land prices, and new regulations. The current structure of the hotel industry is out of balance with the demands of these new markets. Hong Kong now needs to consider some intervention in the hotel industry to further encourage the development of properties in this mid-market.

Selection Of Students For Hotel Schools: A Comparative Study

In the discussion - Selection Of Students For Hotel Schools: A Comparative Study - by William Morgan, Professor, School of Hospitality Management at Florida International University, Morgan’s initial observation is: “Standards for the selection of students into schools of hospitality management around the world vary considerably when it comes to measuring attitudes toward the industry. The author discusses current standards and recommends some changes.” In addition to intellectual ability, Professor Morgan wants you to know that an intangible element such as attitude is an equally important consideration to students seeking curriculum and careers in the hospitality field. “…breaches in behavior or problems in the tourist employee encounter are often caused by attitudinal conditions which pre exist the training and which were not able to be totally corrected by the unfreezing, movement, and refreezing processes required in attitudinal change,” says Morgan. “…other than for some requirements for level or grade completed or marks obtained, 26 of the 54 countries sampled (48.1 percent) had no pre-selection process at all. Of those having some form of a selection process (in addition to grades), 14 schools in 12 countries (22.2 percent) had a formal admissions examination,” Professor Morgan empirically provides. “It was impossible, however, to determine the scope of this admissions examination as it might relate to attitude.” The attitude intangible is a difficult one to quantify. With an apparent sameness in hotels, restaurants, and their facilities the significant distinctions are to be found in their employees. This makes the selection process for both schools and employers a high priority. Moreover, can a student, or a prospective employee, overcome stereotypes and prejudices to provide a high degree of service in the hospitality industry? This query is an important element of this article. “If utilized in the hotel, technical, or trade school or in the hiring process at the individual facility, this [hiring] process would provide an opportunity to determine if the prospective student or worker is receptive to the training to be received,” advises Professor Morgan. “Such a student or worker is realistic in his aims and aspirations, ready in his ability to receive training, and responsive to the needs of the guest, often someone very different from himself in language, dress, or degree of creature comforts desired,” your author further counsels. Professor Morgan looks to transactional analysis, role playing, languages, and cross cultural education as playing significant roles in producing well intentioned and knowledgeable employees. He expands upon these concepts in the article. Professor Morgan holds The International Center of Glion, Switzerland in high regard and cites that program’s efforts to maintain relationships and provide graduates with ongoing attitudinal enlightenment programs.

Microcomputers and the Hotel Executive

Microcomputers are emerging as a potent source for decision- making for hotel management. This article provides the hotel executive with a short course on the possibilities of microcomputers in his or her everyday work.

Evaluating Hotel Marketing Effectiveness: The Audit

Hotel management is increasingly looking for ways to evaluate marketing effectiveness. A system is needed to assess objectives, strategies, and performance. The Marketing Audit provides a workable, worthwhile tool for managers to assess current performances and long-range goals.

Does Financial Performance Depend on Hotel Size? Analysis of the Financial Profile of the U.S. Lodging Industry

This research presents a financial profile of the U.S. Lodging Industry based on an analysis of 2,091 financial statements (fiscal year 2011) for individual hotels ranging in asset size of $500 thousand to $250 million. The study analyzes summary results of the financial position and profitability of hotels based on a common size analysis of Balance Sheets and Income Statements. Furthermore, the study analyzes 10 key performance benchmarks as measured by Liquidity, Solvency and Operating Ratios. The results of the study show a divergence in the hotel industry’s financial performance based on the size of the hotel and by upper, median and lower quartiles of the study sample.

The Mature Market: Underlying Dimensions and Group Differences of a Potential Market for the Hotel Industry

The mature market, defined as age 55 and up and consisting of approximately 64 million Americans, is expected to increase. Studies show that this group travels more frequently, travels greater distances, and stays longer. The authors seek to determine if underlying dimensions exist for the mature individual with regard to the selection criteria for lodging when traveling for pleasure, and to determine if differences exist between various demographic subsegments of this market with regard to these underlying dimensions.

Segmenting The Hotel Market

Marketing involves satisfying consumers' needs and wants with products of two types, goods and services. Hotels provide an intangible product, referred to as a service. On the other hand, toothpaste is an example of a product that is a tangible good. The lifeblood of both is marketing. Different as they are, each utilizes market segmentation and positioning. The segmentation movement in the hotel industry is analyzed in the light of marketing principles developed from the consumer goods sector. The analysis suggests that the hotel industry is engaged in a multiple segmentation strategy

Property Exchange Rules Offer Tax Opportunities for Hotel Owners

One strategy often overlooked by hospitality owners in developing cost-saving strategies is the use of like-kind exchanges to acquire property. The author reviews some alternative methods of like-kind exchanges, which may not only provide new business opportunities for the hospitality owner, but lucrative tax benefits as well.

Effect of Agency Problems on RTC Hotel Appraisals

Agency problems that helped cause the banking crisis in the United States in the 1980s impacted hotel appraisals competed for the Resolution Trust Corporation (RTC). Lower appraised values would help make more bids acceptable, helping to sell more assets quickly. The results indicate appraised hotel values were much lower than sales prices in states with a high number of bank failures.

Implementing Employee Drug and Alcohol Testing: Implications for Hotel Managers

Abuse of drugs and alcohol in the workplace has reached epidemic proportions in the hotel industry. The authors review considerations for drug testing and discuss drug and alcohol testing methods and the manner in which an effective policy should be developed.

Differential Impacts of Information Technology Services in the Korean Hotel Industry: A Study of Management Perceptions

Successful introduction of information technology applications in various operations of hotel management is vital to most service firms. In recent decades, technologies of information, automation, and communication are increasingly recognized as essential components of a hotel company’s strategic plan. In this study, 62 super-deluxe hotels (5 star), deluxe hotels (4 star), and tourist hotels (3 star) in Korea are examined for differences in the impact of information technology services on guest’ satisfaction, guest convenience, and operational efficiency. The findings generally suggest that the impacts of information technology-enhanced services vary according to the category of hotels in Korea. The results of the study are expected to assist managers in the selections and implementation of information technology systems in their hotel.

An Examination of Quality Service Perceptions in a Hotel

Perceptions of managers and employees on topics related to quality and quality service in a hotel were studied to define the term “quality” and the activity of "quality service" delivery, looking at differing definitions of the terms and the activity and the identification of problem issues relating to training, communication, recognition, and department coordination. Recommendations for action included changes in the training program, a reemphasizing of the incentive programs, the development of Quality Improvement Teams, improved communication, and increased service delivery leadership.

Exploring the Relationship Between Hotel Characteristics and Crime

Knowledge of crimes that have occurred in hotels has been scares. The authors explore the nature and causes of hotel crimes in a U.S. metropolitan area. Levels of crimes were directly related to size of the hotel, target market of business travelers, access to public transportation, and an unsafe image of the environment surrounding the hotel. Crime prevention programs based on the findings can be developed to protect the safety of guests and property.

Hotel Franchising: Perspectives and Prospects

The outlook for lodging franchising in the new marketplace made possible by the growth of technology is the best it has been. The CEO of the Hotel Division of Cendant, the world's largest franchisor, offers opera- tors opportunities to gain larger shares of a growing market.