Original scientific paper

https://doi.org/10.20867/thm.1.1.4

Economic justifiability of investments into hotels

Branko Blažević orcid.org/0000-0002-7615-9136 ; Hotelijerski fakultet Opatija, Sveučilište u Rijeci, Hrvatska

Abstract

This paper provides an analysis of cost-efficiency of investments in hotel rooms by using the room rate as one of the most important parameters of profitability.
Research has been conducted on a sample of eleven up-market hotels in Croatia built between 1960 and 1980. The analysis was carried out by contrasting the room rates of the respective investment programs with the room rates valid between 1980 and 1990, i.e. in the period when the exploatation rate was at the highest.
The analysis provides an overall estimate of cost-efficiency of investments in hotel rooms in the past period and highlights the complex issues typical of the process of meeting the international hotel standards.

Keywords

hotel premises; hotel room; investment; room-rate; occupancy

Hrčak ID:

182680

URI

https://hrcak.srce.hr/182680

Publication date:

30.6.1995.

Article data in other languages: croatian

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