An Impact of Capital Structure on Profitability of Selected Hotels

Hospitality sector is one of the fastest growing service sectors of India. The growing economy, growing prosperity of people, higher disposable incomes, a growing middle class and ambition of people to explore something new have boosted the demand of hotel industry in India. In today¿s very complex business world, it is essential to understand the factors that affect the profitability and performance of the company. Therefore, an attempt has been made here to analyze the relationship between the debt ¿ equity mix and profitability. The study of capital structure of selected hotel chains i.e. IHCL, HLVL, EIHL and ROHL is undertaken for a period of thirteen years beginning from 2007-08 to 2019-20. The analysis is carried out with the help of descriptive statistics and correlation analysis. The hypotheses are tested by applying ANOVA and regression analysis. It is identified that hardly any regression model is significant.