Abstract
The previous article explained the ho tel industry's reaction to the last six years of economic upheaval -infla tion-fueled expansion, stagflation (economic stagnation and rapidly in creasing inflation), and the present recession, characterized by a decreas ing rate of inflation and continued high interest rates. The resulting un certainty of the economic and business environment requires creative financ ing, which comprises a realistic and thorough project-evaluation process and sharing of risks and incentives by developers and lenders. This article will address specific is sues of concern to developers and lenders in the project-evaluation pro cess and summarize the primary debt packages currently used by the lodging industry.
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