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titles description    advance search
Published : September 03, 2017 | Author : Santosh
Category : Hotel Management Training | Total Views : 105 | Unrated

  
Santosh
International Hotelier and Trainer.


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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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