1. What is the price earning ratio for a hotel chain with 9 full service properties? The chain’s total revenue for 2008 was $79,238,000; the departmental expenses were 33,343,000; undistributed operating expenses were $17,345,000; rent, property taxes & insurance totaled $3,040,000; interest & depreciation expenses were $4,823,000; income tax was $6,206,000. The hotel’s had common shares outstanding at the beginning of the year 9,000,000 shares and at the end of the year 12,000,000 shares. The hotel’s average market price over the year was $23.12 per share.
2. What is a hotel’s current ratio for Y2008, if the property’s total assets in Y2008 were $20,375,419.4 of which 3.1% were current? The property’s total liabilities in Y2008 were $17,528,332.2 of which 2.5% were current. In Y2007, the hotel’s current assets were $588,971.6 and current liabilities were $214,966.2.
3. What is the fixed asset turnover of Y2008 for a 731-room downtown hotel that recorded total revenues of $34,076,753 in Y2008 and $35,650,873 in Y2007? The property on its balance sheet had fixed assets in Y2008 of $26,800,000 and $22,750,000 in Y2007.