As the hotel is bought from the third party all the liabilities will be on us and that is one reason

that
the loan amount is high. The hotel has good amount of assets and in years to come the hotel will be
in profit reducing burden of liabilities. The loan also means that, the accounts of hotel is good and
the bank has approved loan based on the past performance. Therefore, it is a good sign as company
maintains debt-equity ratio. The hotel needs to cut its cost on operating expenses, so that in future
the revenue can be high. The company has a strong balance sheet and the loan amount needs to
come down so that hotel can thrive more.
As the Working capital is in positive, it is a good sign for business.