Cost vs Price vs Value of a Hotel Room

Hotelivate Private Limited | May 21, 2018

Frequently confused, often used interchangeably and seldom understood – The cost, price and value of a hotel are not the same thing! It is rather surprising that industry stakeholders routinely seem to obfuscate these distinct terms and their implications on the worth of an asset. This article aims to set the record straight and explain the specific differences when performing a hotel's monetary assessment. In a bid to avoid 'death by jargon', I'm also going to tell you a story… COST The total cost of a hotel is simply the accumulation of all expenditures incurred during the tenure of its development. This could include (bu...