Hotels Restaurants - Leisure - Industry Analysis - a new market research report on companiesandmarkets.com
PR-Inside.com: 2014-03-06 00:59:02
In an effort to appeal to consumers across most demographics, many hotel enterprises own upscale, mid-level, and economy properties. Such assets can also be classified as luxury, full-service, limited-service, international, and timeshare. Besides producing revenue and earnings from room bookings, companies on the hospitality side of the industry may generate proceeds from management contracts, franchise agreements, and vacation ownership programs. Management contract and franchise agreement fees are typically based on an operation´s gross revenue or profitability. As well, fees may come from other services, including centralized reservations, sales, and marketing and advertising. A considerable number of enterprises on the gaming side own and operate resorts that offer gambling, rooms, dining, entertainment, retail space, convention and meeting facilities, and other amenities. Only venturesome, risk-tolerant investors should take a look here. Restaurant companies are essentially retailers of prepared foods, and their operating performance is influenced by many of the same factors that affect traditional retail stores. For the most part, restaurants have business models that are relatively easy to understand. Nonetheless, there are a number of unique factors to consider when making investment decisions regarding this large and segmented industry. Competitors include everything from delis and pizzerias to fine-dining restaurants. And, of course, it is relatively easy to forgo prepared foods, altogether, in favor of home cooking, which is usually a less expensive option. Thus, restaurant meals are discretionary purchases, and the industry tends to be highly cyclical.
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