search query: @indexterm Hotel and catering industry / total: 391
reference: 194 / 391
| Author: | Elgonemy, A. R. |
| Title: | Debt Financing Alternatives -Refinancing and Restructuring in the Lodging Industry |
| Journal: | Cornell Hotel and Restaurant Administration Quarterly
2002 : VOL. 43:3, p. 7-22 |
| Index terms: | DEBT DEBT FINANCING INDUSTRIES ANALYTICAL REVIEW HOTEL AND CATERING INDUSTRY |
| Language: | eng |
| Abstract: | Since 1990 the financing and ownership of lodging real estate have undergone substantial transformations. Specifically, the security required for hotel real-estate deals has fundamentally changed the way lodging assets and companies are financed. Hotel buyers, developers, owners, and managers need to understand the different alternatives to securing debt, as well as the feasibility of numerous financing strategies. Debt can be beneficial, but only up to a point-beyond which the costs of potential financial distress begin to outweigh the benefits of leverage. Before weighing debt-financing alternatives hotel investors need first to consider four basic elements, namely (1) business risk, (2) the need for financial flexibility, (3) the degree of ownership's risk aversion, and (4) tax considerations. |
SCIMA