While this is an increase from 16.4% in the previous year, "the percentage would have been much higher had hotel managers not reduced interest expenses by an average of 9% during 2001," Jack Corgel, managing director of HRG, says in the report.
Corgel expects the number of deficient properties, those with insufficient operating income to cover interest expenses, to rise again this year, then "noticeably decline in 2003 as hotel markets recover."
HRG's analysis is based on the 3,900 financial statements in its "Trends in the Hotel Industry" database.
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