Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
201
SEARCHING FOR THE OPTIMUM LEVERAGE POINT FOR LODGING FIRMS FOR VARIOUS 
ECONOMIC CONDITIONS 
Seoki Lee 
Temple University 
Philadelphia, PA, U.S. 
ABSTRACT 
The purpose of this study is to investigate the optimum leverage point in the lodging industry setting. In 
detail, this study examines the validity of using industry mean and median leverage ratios as the optimum leverage 
point for lodging firms during the entire sample period of 1980 to 2005, or economic expansion and recession 
periods. The findings of this study suggest that the industry median leverage ratio is more valid than the mean 
industry ratio as a proxy for the optimum lodging industry leverage ratio.