Chapter 4
Interest Relief subsidies
Government investment incentives that involve government payment of the difference between a fixed interest rate and the rate charged by a commercial bank.
Soft Loans
A loan that offers long term or lower interest rates in the initial years so that loan costs are reduced in the early years when cash flow is tight.
Voluntary Association
Hotels that are independatly owned and operated, and grouped together primarly for marketing reaosns.
Relaxations of zoning rules for cases in which the standard requirements would pose undue hardship on the property owners.
technical service agreement
An agreement between an owner and operator in which the operator agrees to provide technical services in a highly specialised area
LIBOR
London interbank offering rate. multinational index in setting interest rates for loans
Centralized management
a system of exercising control over as many organizational variables as possible at a hotel companies headquarters or home office
Environmental Impact statement EIS
generally written statement that describes what may happen to the environment in both the short and long term is a specific project is carried out
Business format franchise
A type of franchise agreement that allows the franchisee to use the franchisors designs, systems, procedures and worldwide reservation system and its group advertising, promotion and purchasing system.
Turnkey agreement
A special type of technical service agreement in which a hotel company hands over a fully operational property to the owner, who may then exercise any number of options with regard to management.
Preferential Loans
Government investment incentives that involve government loans at a preferred rate below the market
Corporate hotel chains
Hotel organization that have their own brands or brands that may be managed by the corporate chain or by a conglomerate
Impact Fee
A fee charged to private developers to cover the cost of Infrastructure or services that must be provided by government as a consequence of development.
Restrictive covenant
A clause in a management contract which specifies that the operator may not own, manage ar be affiliated with another property within a specified geographical area encompassing the owners hotel for a specific period of time.
Collectivism
The condition that exists in a society which ties between individuals are very tight. Everyone looks after the interest of group members and to have no other opinions/belief outside the group. In return the group protects and provides for its members.
Prime Rate
The rate the US banks for their best customers
Decentralized management
unit of management that varies in the degree of freedom given to unit-level managers
Market feasibility study
in other words, tells if there is a market for this new expenditure.
Shortfall time frame
A period during which a hotel operators ability to produce the agreed upon gross operating profit will be measured, typically several years long in order to protect the operators from a one time poor performance year.
Culture
A mental state shared among members of society who live within national or regional boundaries
Real Estate Investment Trust REIT
an investment approach that allows individuals to invest in a hotel property through centralized management without being subject to corporate income taxes
psychographic data
information about prosective customers lifestyles, interests, hobbies, and their propensity to travel.
Preliminary site and building analysis
A study to evaluate a site before the developer spends a lot of money for extenisve design documents when it may not be economically feasible.
technical assistance fees
Ethnocentrism
The belief or attitude that ones culture is superoir to all others