La Quinta Inns (La Quinta) operates a chain of mid priced hotels aimed at the cost-conscious business traveler. Its targeted guests desire quality rooms in convenient locations at attractive prices but do not require banquet and convention facilities, in-house restaurants, cocktail lounges, or room service. Exhibit 4.37 presents selected profitability ratios and other data for La Quinta.
Prime Hospitality Corporation (Prime) operates several hotel chains with different targeted customers from those of La Quinta. Its AmeriSuites and Wellesley Inns offer hotel suites in primarily suburban commercial centers and corporate office parks. These hotels are located with easy access to shopping, food, and entertainment amenities. Prime also operates full-service hotels under national brand names (Marriott, Sheraton, Crowne Plaza) that offer banquet and convention facilities. Exhibit 4.38 presents selected profitability and other data for Prime.
Required
Analyze the changes and the differences in the profitability of these two hotel chains to the maximum depth permitted by the given data.