4 of 12    operators would get the room for £50 a night, and airlines/ large businesses would be able to negotiate the price down to £40. Only a very small proportion of the total customer base would be paying anywhere near the full room rate in such depressed conditions. As occupancy levels rise, so will the average room rate. Table 12D. Freemantle balance sheet in $  '000 by year with year 5 most recent. 1 2 3 4 5 Assets: Properties 15250 22450 35000 42400 50650 Plant 1750 2250 2400 2600 2800 Receivables 1200 1300 1350 1550 1750 Cash 2400 2200 1200 1100 1600 Liabilities Payables 1500 1650 1700 1800 1850 Short term debt 5600 7500 8500 11000 13000 Leases 1500 5200 7500 3000 3000 Debentures 6000 9500 9500 Net assets 12000 13850 16250 22350 29950 Financed by: Share capital 8000 10000 12000 16000 16000 (1 US$ shares) Share premium 4000 3850 4250 6350 13950 The market has been characterised by the increasing segmentation into a variety of niches. Many of the leading hotel companies have developed three or four levels of hotels ranging from ultra-budget to luxury hotels, often further sub-divided into extended stay self catering units and standard room units. An example of this division would be the French Accor chain, with Sofitel Pullman hotels at the top of the range normally at the centre of towns, Novotel the business hotel on the road network outside, Mercure the business hotel inside the town, Ibis and Etap hotels as the economy chain, and Formule 1 as the lowest price hotel chain. Prices vary from $20 to $200 a night; with a corresponding level of service. Many hotels faced a dilemma on the level of service that they provided. Though room sales accounted for only half on average of total revenues, they normally accounted for a significantly higher level of profit. This was because the provision of food and beverage was very expensive for the hotels, which often lost money in their restaurant and bar areas. Changing patterns of demand had also meant that hotels had developed new services. The rise in convention business had meant a major market opportunity in the US. Disneyworld, for example had become one of the major convention centres in the world, with an estimated 17,000 available rooms and a favoured centre for many US conventions. Other convention locations include Las Vegas and Atlantic City.  Another service segment has been the steady world-wide growth in the requirements for training and meetings, including the steady expansion of tele-conferencing, for which the hotels were ideally placed. The demand for tourism had also meant the expansion of the 'hotel resort'. Throughout Asia, there is an increasing expansion of the hotel resort where complete areas have been