The liquidity and profitability of Government and private hotel companies showed fluctuating trend and often found inefficient. Although private hotel companies have been found more liquidity conscious in comparison to Government hotel companies but overall, none of them observed in a secure and efficient liquidity position to overcome its liabilities in time. One possible reason for industrial sickness is the poor management of liquidity. A firm in order to remain in existence and sustain its activities as an ongoing concern must had enough liquidity to meet its obligations as and when they become due. And, analysis showed that hotel companies under study showed a mixed profitability condition and no one is best or worst performer.

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Keywords: Liquidity, Profitability, Liquid Ratio, Return on Equity and Return on Capital Employed.