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titles description    advance search
Published : November 30, 2012 | Author : Santosh
Category : Accounts Training | Total Views : 1455 | Rating :

  
Santosh
International Hotelier and Trainer.
Cost Control Process in Hotels.

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The cost of capital in making a hotel is the minimum rate of return expected by its investors. It is the weighted average cost of various sources of finances used by a hotel. The capital structure may be in the form of debt, preference capital, retained earnings and equity shares. A decision to invest in a particular hotel project depends on the cost of capital of the firm, and a fixed minimum rate of return expected on its investments, so as to maintain the market value of its share.

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