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Top 5 Companies in the Hotels, Resorts & Cruise Lines Industry With the Highest Debt to EBITDA Ratio (LQ, BEL, RLH, MAR, STAY)

By David Diaz

Below are the three companies in the Hotels, Resorts & Cruise Lines industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

La Quinta Holdin ranks highest with a a debt to EBITDA ratio of 5.8. Belmond Ltd-A is next with a a debt to EBITDA ratio of 5.2. Red Lion Hotels ranks third highest with a a debt to EBITDA ratio of 5.0.

Marriott Intl-A follows with a a debt to EBITDA ratio of 4.9, and Extended Stay Am rounds out the top five with a a debt to EBITDA ratio of 4.5.

SmarTrend recommended that subscribers consider buying shares of La Quinta Holdin on June 15th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $14.89. Since that recommendation, shares of La Quinta Holdin have risen 5.8%. We continue to monitor La Quinta Holdin for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio la quinta holdin amex:bel belmond ltd-a red lion hotels marriott intl-a extended stay am

Ticker(s): LQ RLH MAR STAY