Because hotels are pieces of real estate as much as they are operating companies, the cost of borrowing (interest) and the rate of local taxes impact the decision to build or buy in a certain locality and at a certain time period.

Question

Quizplus · Accepted Answer

Hotels are both real estate investments and operating businesses, so the cost of borrowing money (interest rates) and the level of local taxes significantly affect the financial viability and decision-making process regarding building or purchasing hotels in specific locations and times.

Because Hotels Are Pieces of Real Estate as Much as They