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A Hotel Lender Is Considering Making a Loan to a Hotel

Question 8

Multiple Choice

A hotel lender is considering making a loan to a hotel owner.If the hotel owner is utilizing a management company in the hotel's operation,the lender will most often


A) be less likely to make the loan because the hotel's profits will be reduced because it must pay the management company's fees.
B) be more likely to make the loan because the hotel's profits will be increased because of the professional management of the property.
C) be less likely to make the loan because the hotel's profits will likely be increased after paying the management companies fees.
D) be more likely to make the loan because the hotel's profits will be reduced because of the professional management of the property.

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