In twenty pages avoiding bankruptcy in the hospitality industry is examined in terms of organization and management. Twenty three sources are cited in the bibliography.
Name of Research Paper File: CC6_KShotelFinBankr.rtf
Unformatted Sample Text from the Research Paper:
less negative connotation than it did in the past, but the need for it in the hospitality industry - or any other, for that matter - indicates that management has
not properly identified trends or accurately assessed the organizations place in its industry. Sound financial management does not occur in a vacuum. It is dependent on accurate assessment
of the state of the industry; economic conditions in industries that can affect the hospitality industry; regional and global economic conditions; political stability and a host of other issues.
It is dependent on the identification and pursuit of appropriate strategy and must take into account changing customer needs as it strives to meet those needs. One Scenario
Lodgian provides excellent support for the value of a conservative approach during uncertain economic times. "Lodgian filed for Chapter 11 bankruptcy in December after
being weighed down by debt. As of Sept. 30, its assets were listed at $1.07 billion, and its debt at $968.7 million" (Alisau, 2002; p. 13). A reorganization plan
submitted August 30 was expected to go into effect during the first week of November, 2002. Allowing Lodgians debt to reach such staggering
levels indicates that management likely was not performing as well in other areas as it should have been. Its stock fell to the point that it was delisted in
2001 (Alisau, 2002), placing it into the realm of junk and causing the company to lose all credibility with its active investors and with any analysts who may have been
following its stock. Currently it is "petitioning the American Stock Exchange for a new symbol" (Alisau, 2002; p. 13) so that it can offer new stock as a company