Renting the ballroom and providing food and beverage to a pay-as-you-go function based on ticket sales (say, a charitable dinner/dance) is a high credit risk venture for the hotel.

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This is because the hotel's revenue and ability to cover costs are directly dependent on the number of tickets sold, which can be unpredictable. If ticket sales are low, the hotel may not recover its costs or make a profit, making it a high credit risk.

Renting the Ballroom and Providing Food and Beverage to a Pay-As-You-Go