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Published : November 14, 2014 | Author : Santosh
Category : Free Hotel Management Training | Total Views : 1683 | Rating :

International Hotelier and Trainer.
49 Exclusive Hotel Management Tools.

To Download 49 Exclusive Hotel Management Tools, Please Visit the following Link :

49 Exclusive Hotel Management Tools

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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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