... Europe, the tsunami, the Terrorist attacks and the Iraq war. The Hotel industry is also very sensitive to economic downfall as hotels are a luxury service and will be first to have decreasing sales in a falling economy. The fact that betting and gaming has a higher sales proportion and therefore a higher percentage of turnover means that the Hilton group is a potentially good investment based on the fact that betting and gaming is continuing to grow and advance rapidly, especially due to the World cup in 2006, which will increase betting significantly. Overall there are no problems with the solvency of the company; both liquidity and gearing ratios are improving on a yearly basis. Both in the short and long term solvency appear to be steady. However the cash flow has cause for concern in 2004 as it has a negative cash flow of 8.1million, this may be due to ...

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